US spring wheat futures tumbled to a 10-year low on Friday under pressure from massive supplies, cutting prices for makers of artisanal breads, bagels and pizza crust. The decline hurts farmers across North Dakota, South Dakota and Minnesota who are in the process of harvesting a large crop for the second year in a row. It is the latest blow for growers who have suffered over the past year as the trade war between Washington and Beijing has slashed shipments of US soyabeans to top-importer China.

Many farmers have recently sold spring wheat at low prices after keeping it in storage since last year because they need to make room for this year's harvest, traders said. The US Department of Agriculture expects yields to reach a record-high for this crop, which is known as "the aristocrat of wheat" because of its high protein content.

Nearby MGEX wheat futures sank as low as $4.77-1/2 a bushel, the lowest price for a front-month contract since October 2009. The December spring wheat contract ended down 1% at $4.96-3/4 and set a contract low of $4.96-1/4.

The most active soft red winter wheat contract at the Chicago Board of Trade (CBOT) dropped 2.4% to close at $4.62-1/2 a bushel and touched its lowest price since May 2019.

Nearby K.C. hard red winter wheat fell to its lowest price since September 2016. December hard red winter wheat settled 1.6% weaker at $3.97-1/4 a bushel and set a contract low of $3.93-3/4.

The CBOT reported 440 deliveries against CBOT September wheat and 1,000 K.C. September wheat deliveries on first notice day, defying trade expectations for minimal deliveries. The MGEX reported 666 September spring wheat deliveries. The losses in wheat dragged down prices in the neighbouring corn market, traders said. Most-active corn slipped 0.6% to $3.69-3/4 a bushel at the CBOT, while soyabeans were nearly unchanged.

Copyright Reuters, 2019