Global grain traders expect prices could continue to fall as the world deals with an oversupply of wheat.
Wheat prices were lower overnight on the back of better than expected weather throughout Black Sea grain growing regions.
The falls come as global stock markets tumbled as China suspended share trading yesterday.
Jack Scoville, the vice president of Price Futures Group in Chicago, said grain markets had expected freezing temperatures in Ukraine and Russia would damage wheat crops.
“But it seemed to escape those types of freezing temperatures,” he said.
“The areas that did get cold enough to perhaps do some damage seem to have enough snow on the ground to prevent much in the way of winter kill,” Mr Scoville said.
“You really saw the Chicago and the Kansas City, which are the winter wheat markets, go significantly lower.”
March wheat was down around $3 a tonne in Australian terms.
Tension in the Middle East, combined with drought in Australia and mixed weather reports from the Black Sea region, has further added uncertainty into global markets.
Mr Scoville said stock market slumps across the globe would do little to boost grain prices.
He said further declines in China would likely affect soybean prices more than wheat prices.
(Source – http://www.blackseagrain.net/novosti/grain-traders-expect-wheat-prices-to-fall-in-2016)