Wheat futures tumbled to the lowest in almost three weeks on speculation that demand will slow as livestock producers use more corn, a cheaper substitute for animal feed.
Corn prices have slumped 6.9 percent since touching a record high on Aug. 10, cooling a rally sparked by crop damage from the worst U.S. drought since 1956. Over the same period, wheat dropped 3.7 percent.
“Wheat needs to have something to follow, and today it’s following corn lower,” Dewey Strickler, the president of Ag Watch Market Advisers in Franklin, Kentucky, said by telephone. “The market has fallen, and we haven’t been able to muster a bounce back.”
Wheat futures for December delivery declined 2.4 percent to settle at $8.6775 a bushel at 2 p.m. on the Chicago Board of Trade, after reaching $8.6525, the lowest since Aug. 16. The contract posted the biggest decline since Aug. 23, and prices have dropped in nine of the past 10 sessions.
Corn futures for December delivery fell 1.8 percent today on the CBOT to close at $7.9075 a bushel, compared with an all- time high of $8.49 last month. Corn is the biggest U.S. crop followed by soybeans, hay and wheat, government figures show.
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