Wheat futures declined on Tuesday, as traders tried to gauge how badly Russia’s drought would affect grain supplies.
On the Chicago Board of Trade, wheat futures for September delivery lost 5.4 cents to $5.766 per bushel.
This decline marks the third straight day of falling prices. Some analysts thought the price had run up too far as a blazing Russian sun parched growing land and ruined crops across the fields of the world’s fourth-largest wheat exporter.
Another factor in the declining prices was an important purchase by Egypt, the world’s largest buyer of wheat. Russia sold 120,000 tons of wheat to Egypt, reported Bloomberg, out of a total of 350,000 tons of purchases by the Egyptian government.
This caused some to consider that Russia’s weather conditions may not have been as harmful as traders feared. If Russia is willing to sell 120,000 tons of wheat abroad, the thinking goes, then obviously the domestic supply is not as depleted as some have projected.
Russian and Northern European farmers are now in the midst of their main harvest, and Russia’s yields will be of intense concern to traders in the wheat and grain futures markets.
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