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  • Dec 6th, 2012
  • Comments Off on US wheat futures fall for fourth day in a row
US wheat futures fell on Tuesday, extending a losing streak due to technical weakness, traders said. The benchmark Chicago Board of Trade March wheat contract has fallen for four days in a row, shedding nearly 4 percent during that time period. Wheat's failure to break through its 50-day moving average on Monday despite signs of renewed export demand spurred the latest round of technical selling.

US Plains expected to remain dry through the balance of this week but some precipitation expected in eastern Colorado, Kansas, Oklahoma and Texas during the weekend, said John Dee, meteorologist for Global Weather Monitoring. Storm could hit in the form of snow, with between 2 and 6 inches expected in some areas. Still suffering through one of the worst droughts in history, wheat farmers are also having to deal with the warmest conditions ever for early winter in the High Plains, causing young wheat plants to try to grow at a time when they normally would be entering dormancy for the winter.

Ukraine hopes that grain traders will voluntarily suspend wheat exports until next spring after exceeding a previously agreed export cap of 5.5 million tonnes, a newspaper quoted Agriculture Ministry officials as saying. Australia has trimmed its wheat production forecast in the current marketing year by 2.3 percent from its previous estimate to 22.03 million tonnes, though the world's No 2 exporter said crop damage from dry weather did not appear as bad as expected.

Copyright Reuters, 2012


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