Since late January, the agricultural commodity has climbed roughly 30 percent, leading some analysts and investors to believe the commodity's gains were overdone. Concerns are growing about escalating tensions in Ukraine while delays are slowing from Canada. The quality of some wheat from the U.S., the globe's largest exporter, also is of concern due to dry conditions.
"The market thinks that at these levels there's a fair bit priced in for any weather concerns, in the U.S. primarily," analyst Paul Deane with Australia & New Zealand Banking Group Ltd. in Melbourne told the news source on Thursday. "There's a reasonable risk that it consolidates near-term."
At 8:44 a.m. on Thursday, wheat futures edged down 0.59 percent, a 0.0425-cent drop to $7.115 per bushel.
The Wall Street Journal reports regions of Kansas, Oklahoma and Texas are not forecast to see very much rain during the next 14-day period. That area is the nation's top-producing region of wheat.
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