Wheat drops on lower demand forecast
By STEVE ROTHWELL
NEW YORK (AP) a¿¿ Wheat prices fell Wednesday after the government raised its forecast for year-end supplies, citing a drop in demand from China.
In a monthly report, the U.S. Department of Agriculture raised its forecast for this year's ending stocks of wheat globally to 186.68 million metric tons from 183.81 million tons in March.
The price of wheat has climbed 11 percent this year amid concern that global supplies would fall amid the ongoing tension in Ukraine, where Russian President Vladimir Putin formally annexed the Ukrainian Crimea region last month. Ukraine and Russia account for 17 percent of the world's wheat exports. Supply concerns have also been exacerbated by dry weather in the Southwest of the U.S., which may hurt this year's crop.Higher prices for wheat this year may have also encouraged traders to look for an excuse to sell and book some of their gains. "Wheat prices did get to attractive levels," said Todd Hultman, a grain market analyst at DTN. "These are definitely much better prices than anyone expected two to three months ago." Wheat for May delivery fell 12 cents, or 1.8 percent, to $6.69 a bushel. In other trading of agricultural products, corn edged lower and soybeans rose. Corn for delivery in the same month fell 4.8 cents, or 0.9 percent, to $5.02 a bushel. Soybeans for May rose 12.75 cents, or 0.9 percent, to $14.95 a bushel. Most metals fell. Gold, silver, copper and platinum declined. Palladium rose. Gold for June delivery fell $3.20, or 0.2 percent, to $1,305.90 an ounce. The price of silver for May dropped 29 cents, or 1.4 percent, to $19.77 an ounce. Copper for May fell 1.4 cents, or 0.5 percent, to $3.04 a pound. July platinum dropped $2.80, or 0.2 percent, to $1,438.90 an ounce. Palladium for June delivery rose $6.70, or 0.9 percent, to $782.55 an ounce.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV