Wheat dropped on speculation that yields in Kansas, the biggest U.S. producer of winter varieties, will increase, while the pace of the harvest was faster than normal. Soybeans also fell.
About 20 percent of the nation’s winter wheat was collected as of June 3, up from the average in the previous five years of 3 percent, U.S. Department of Agriculture data show. Yields in Kansas will probably average about 40 bushels an acre, up from 35 bushels a year earlier, Kansas Wheat, an industry group, said this week.
“The yields we’re hearing from Kansas are pretty good,” Jason Britt, the president of Central States Commodities Inc. in Kansas City, Missouri, said in a telephone interview.
Wheat futures for July delivery slid 1.8 percent to settle at $6.3025 a bushel at 1:15 p.m. on the Chicago Board of Trade. This week, the price gained 2.9 percent, partly because dry weather threatens Russia’s crop.
The commodity also declined as the dollar rose against a basket of major currencies, eroding the appeal of shipments from the U.S., the world’s biggest exporter.
Soybean futures for November delivery, the contract with the highest open interest, dropped 0.7 percent to settle at $13.325 a bushel.
Wheat is the fourth-largest U.S. crop, valued at $14.4 billion in 2011, behind corn, soybeans and hay, government data show.
To contact the reporter on this story: Tony C. Dreibus in Chicago at firstname.lastname@example.org.
To contact the editor responsible for this story: Steve Stroth at email@example.com