Wheat slides as Turkey bans imports, US crop forecast seen higher
Chicago wheat futures extended their decline for an eighth consecutive day on Friday, hitting a one-month low of $6.25-3/4 per bushel. Turkey’s announcement to halt wheat imports until October 15 to support domestic producers added pressure, impacting global demand outlook. Analysts anticipate a robust U.S. winter wheat crop, estimating a harvest of 1.298 billion bushels, while favorable crop conditions in the U.S. continue to weigh on prices. Corn and soybean futures also edged lower due to a strong U.S. dollar after a positive jobs report.
CHICAGO, June 7 (Reuters) -Chicago wheat futures Wv1 fell for an eighth day on Friday after Turkey said it would halt wheat imports in a blow to the global demand outlook, while analysts expected a strong U.S. winter wheat crop to boost supplies of the grain.
Corn and soybean futures edged lower after a strong U.S. jobs report boosted the dollar, which makes U.S. exports less competitive.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 13-3/4 cents at $6.25-3/4 per bushel.
Wheat hovered around a one-month low, nearly $1 dollar below last week’s 10-month peak of $7.20.
Turkey will halt wheat imports from June 21 until at least Oct. 15 to protect domestic producers, the agriculture ministry said.
Turkey is a key destination for Black Sea wheat, notably Russian wheat, and the absence of Turkish demand could stiffen competition in other export markets, traders said.
“It’s another knock on potential export business, and that’s not good,” Mark Gold, founder of Top Third Ag Marketing, said.
Analysts in a Reuters poll published on Thursday estimated the U.S. Department of Agriculture’s June 12 crop production report will forecast a harvest of 1.298 billion bushels of winter wheat, above the May estimate.
“Winter wheat harvest has just kicked off, and a lot of analysts are thinking wheat production numbers will be high,” said Lane Akre, economist at ProFarmer.
The demand setback further shifted attention away from weather risks in Russia, where the country has declared a federal emergency in 10 regions because of damage to crops resulting from frosts in May.
CBOT soybeans Sv1 fell 18-3/4 cents to $11.81 a bushel while corn Cv1 was 6-1/4 cents lower at $4.45-3/4 a bushel.
Favourable crop conditions in the United States, where farmers have made steady progress in planting corn and soybeans while starting winter wheat harvesting, were also curbing prices.
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