According to Bloomberg, wheat fell the most in three weeks after Iraq and Egypt shunned U.S. grain in tenders yesterday, indicating ample global supplies.
Egypt, the world’s largest wheat importer, bought 60,000 metric tons from both Romania and Ukraine on Aug. 6, while Iraq purchased 150,000 tons of Australian and Canadian grain.
“Wheat’s lower because we missed out on that sale to Egypt,” Jamey Kohake, a broker and branch manager at Paragon Investments in Silver Lake, Kansas, said in an interview with Bloomberg. “I don’t think wheat’s going to fall apart completely, but since we missed that sale,” investors are selling the grain, he said.
Wheat futures for December delivery fell 1.4 percent to $6.5375 a bushel at 10:54 a.m. on the Chicago Board of Trade, heading for the biggest decline since July 15. As of Tuesday, the grain slumped 15 percent this year amid an outlook for increased world production.