Wheat Futures Fall to Near 2-Month Low

Wheat futures fell to around $5.70 per bushel in early June, hitting their lowest level since April 10, as a strong global supply outlook and subdued demand continued to weigh on prices. In Ukraine, agricultural consultancy APK-Inform raised its forecast for wheat production to 21.7 million tons from 19.9 million tons, while Russia’s IKAR consultancy increased its estimate to 91.5 million metric tons from 90 million tons. Elsewhere, recent rainfall across large areas of previously parched farmland in Australia improved planting conditions and encouraged late wheat sowing. In the US, improved soil moisture in drought-stricken wheat-growing regions, together with the advancing winter wheat harvest, added to expectations of robust supplies. Meanwhile, heavy and persistent rainfall across major wheat-producing areas in China raised concerns about crop quality and harvest disruptions, but the adverse weather had been largely anticipated, and any resulting damage was expected to be limited.