Spring wheat futures dropped to two-month lows after Canada’s harvest of the high-protein type was seen falling less than investors had expected – in a report which proved more supportive of canola values.
Minneapolis-traded spring wheat futures for December delivery, the best-traded contract, extended early losses to touch $6.41 ½ a bushel, down 2.2% on the day, and the lot’s weakest price since June.
The decline – which took to 24% the contract’s tumble from a high reached early last month on North American dryness worries, particularly in the northern US spring wheat belt – put the lot on course for its first close below 100-day moving average in three months.
The markdown followed the release by Statistics Canada of data showing a Canadian spring wheat crop this year of 18.89m tonnes.
While down 7.7% year on year, the figure was higher than that implied by an analyst survey by Reuters ahead of the data.
In fact, StatsCan’s all-wheat harvest estimate, at 25.54m tonnes, was some 700,000 tonnes below market expectations, as shown by the survey, besides representing a fall of 19.5% on last year’s bumper crop.
However, the extent of the decline reflected in particular expectations for the durum harvest, which StatsCan pegged at 3.89m tonnes – down 50% year on year, and a figure 1.0m tonnes below that investors had pencilled in.
(Source – http://www.agrimoney.com/news/spring-wheat-price-tumble-as-canadas-crop-falls-less-than-thought–10985.html)