U.S. wheat futures pulled back from solid gains that touched record highs and settled mixed. CBOT wheat for September delivery ended down at $4.77 3/4 a bushel.
Weather was once again the primary issue, as heavy rain blanketed the Great Plains region and hit Oklahoma and Kansas with particular force. The wet weather can delay the harvest and reduce the quality of the grain when it finally is brought in.
Canada, the world’s second-largest exporter of wheat, is also pessimistic about its upcoming harvest, saying that prospects for the year’s harvest are poor because the rain has left somewhere between 8.25 million and 12.5 million acres of farmland unplanted.
“Many areas got off to an early seeding start, but the extraordinary rains halted progress. Significant amounts of farmland remain unseedable at this late date,” said Bruce Burnett, the director of the Canadian Wheat Board.
Burnett expressed particular concern about Saskatchewan, a major breadbasket province where just 36 percent of the crop had been seeded.
Although the USDA issued an optimistic forecast for global wheat production, their figures did not factor in the Canadians’ difficulty in planting their crops.
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