Delayed imports to Japan pulled down wheat futures on Thursday as the grain was pushing toward its sharpest monthly drop since this past February, according to Bloomberg.
The Pacific Rim nation held off on orders of assorted varieties from the U.S. after one sample from Oregon was found to have genetics that were unapproved. The country canceled its purchase of 24,926 metric tons of western white wheat from the U.S., according to grain trade and operation director Hiromi Iwahama with the agriculture ministry. The globe's largest exporter of the grain is the U.S.
"This could create major concerns," analyst Paul Gaffet with Offre & Demande Agricole in Bourges, France, told the news source on Thursday. "That is bearish for the U.S. wheat market and bullish for markets that can compensate, such as Australia."
At 8:44 a.m. on Thursday, wheat futures fell 1.14 percent, a 0.08-cent loss to $6.9475 per bushel.
Reuters reports the U.S. Department of Agriculture announced on Wednesday the find of the genetically engineered wheat, which biotechnology company Monsanto Co developed a few years ago. However, global resistance to the genetically engineered wheat prevented the grain from entering the market.
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