CBOT wheat falls on fund liquidation and US-China summit deal pressure
DBA•CBOT wheat futures fell to a five-week low on Monday as fund liquidation and broader market pressure weighed on prices. December soft red winter wheat closed down 14½ cents at $6.88¾ per bushel.
1. Wheat hits five-week low
The most-active CBOT wheat contract dipped to $6.83 per bushel, its lowest price since August 19. December soft red winter wheat closed down 14½ cents at $6.88¾ per bushel; K.C. December hard red winter wheat fell 16¼ cents to $7.45¾, while Minneapolis December spring wheat lost 2¾ cents to $7.10¾.
2. Trade deal offers little support
Grain markets faced widespread pressure from fund liquidation and disappointment with the US-China summit outcome. The countries agreed to cut tariffs on $60 billion worth of goods imported from each other, including US corn and wheat but not soybeans; traders said the tariff news offered little support because Beijing is thought to have limited demand for US grains.
3. Weather and exports watched
Traders were watching US Plains weather, where recent rains have brought relief to parts of the wheat belt, although severe moisture deficits remain in parts of the south. Agronomists said forecasts for more rain could benefit hard red winter wheat crop establishment. Ukrainian President Volodymyr Zelenskiy said India, Turkey, Egypt and some Middle Eastern countries were participating in talks on unblocking Black Sea shipping.
