Conjecture about inventories being higher than estimated pulled down wheat futures on Tuesday, according to Bloomberg.
Stockpiles in the U.S. of the grain may amount to 717 million bushels, according to a survey administered by the news service. The U.S. Department of Agriculture last month projected 716 million bushels and is scheduled to update supply and demand for the grain this Friday.
The southern U.S. is seeing increased rainfall that is forecast to enhance crops and counter dryness that the region endured last summer during the worst drought in more than 50 years. Regions of Texas, Oklahoma and Kansas, the top producers of winter wheat in the U.S., are forecast to see some rain.
“The traders don’t have a willingness to buy wheat,” market analyst Dennis DeLaughter with grain broker Vantage RM in Houston told the news source on Tuesday. “Wheat is not a fun market. The USDA report is going to have some impact on prices.”
At 1 p.m. on Tuesday, wheat futures fell 1.31 percent, a 0.1 cent loss to $7.53 per bushel.
Food Business News reports Canadian supplies of the grain dropped roughly 1 percent from totals on the final day of last year as compared to the same period of 2011.
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