Wheat Erases Gains Even as Supply Expected to Shrink
Wheat future fell today. Earlier, the grain advanced as global supply is expected to fall. INTL FCStone Inc. predicted that world output may decline 7 percent to 647.2 million metric tons in the 12-month period that started June 1. The biggest drop is expected in Australia (28 percent), while Argentina’s production may sink 16 percent. Russian exportable wheat may end by December.
The general market sentiment was positive for most commodities, except grains. US gross domestic product grew as much as 2 percent last quarter, encouraging traders to buy riskier supplies. As for agricultural commodities, it was not a very good trading session for them.
Future for delivery of wheat edged down $0.0825 (0.95 percent) to $8.6450 per bushel on CBoT today.
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