Wheat Prices Drop: Supply Outweighs Demand

Wheat futures at the Chicago Mercantile Exchange experienced their largest drop in three weeks as improved global production prospects put pressure on the market. Consulting firm IKAR raised its production forecast for Russia, the top wheat exporter, while rains in Australia boosted harvest estimates there.

Prices for the December contract in Chicago fell by as much as 1.5%. Beneficial rains in the southern plains of the US are also putting pressure on Kansas City wheat. Wheat futures for December delivery fell 1.3% to $5.2475 per bushel.

Inspections for exports in the US for the week ending August 21 increased by 71% compared to the same period last year.