The price of wheat has dropped to its lowest level in a decade as huge harvests pile up from Russia to the US, cutting the cost of staple foods around the world. Extensive planting and benign weather have forced analysts to repeatedly raise crop outlooks.
Technical selling and grain handlers' efforts to move U.S. winter wheat supplies to buyers ahead of the corn harvest pressured wheat prices, said Roy Huckabay, executive vice-president of Linn & Associates, a Chicago brokerage.
and Demand Estimates report, global wheat supplies for 2016/17 were raised 2.3 million tons on a 4.9-million production increase.
“The world can source wheat from the northern hemisphere or southern, eastern or western. That increases the food security of the world a whole heck of a lot,” said Ken Stein, co-manager of Kottke Commodity Capital in Chicago.
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Source: Agri-Marketing, Financial Times, WASDE
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