Bloomberg News

Wheat Falls For Fourth Day as European Rains Ease Output Concern

June 16, 2011

June 16 (Bloomberg) -- Wheat fell for the fourth straight day as favorable weather eases production concerns and speeds harvesting of U.S. winter crops.

Rain in France will stop drought-stricken wheat from deteriorating further, according to farm adviser Offre et Demande. The harvest of winter varieties is in “full swing” in Kansas, the biggest producer of the grain, according to Kansas Wheat, an grower’s group in the state. Corn planting is 99 percent complete in the U.S.

“Besides the general bearish market environment, prices are also being knocked by the better weather conditions,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report today. “Due to rainfall in the major growing regions of the U.S. and Europe, the crop outlook has improved for corn and wheat.”

England, northern France, the Benelux region and western Germany will see rapid weather changes during the next seven days, including episodes of scattered showers preceded by warm temperatures and followed by some fairly cool conditions, forecaster DTN Televent said in a report yesterday.

Wheat for September delivery fell 5.25 cents, or 0.7 percent, to $7.34 a bushel by 10:17 a.m. London time on the Chicago Board of Trade. Milling wheat for November delivery in Paris declined 25 cents, or 0.1 percent, to 215 euros a metric ton ($303.43), a fifth consecutive slide.

December-delivery corn fell 4 cents, or 0.6 percent, to $6.62 a bushel in Chicago, the fifth straight drop. The price is down 11 percent this month.

November-delivery soybeans fell 17 cents, or 1.2 percent, to $13.4975 a bushel in Chicago. The price has declined 1.9 percent this month.

--Editors: John Deane, Sharon Lindores

To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.


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