Speculators bet bearish on wheat for the first time since June on Monday, as the Black Sea supply is forecasted to increase prices. Russia and Ukraine will be responsible for nearly one-fifth of global wheat exports this year, reports BusinessWeek. Tensions in the region have had a significant impact on the crop, as prices have consistently fallen over the past three months, the longest decline since 2012.
The U.S. government said global stockpiles will reach a three-year high before the 2015 harvest. Futures rebounded 4.6 percent since falling to a four-year low on July 29.
Diana Klemme, the grain-division director at Atlanta-based Grain Service Corp has been tracking the markets for four decades and recently said, "At some point, that selling just runs out of steam. It's easy to assume that if there's conflict, then there could be disruption to exports, if not today, then sometime. We do have the quality issues in the EU. Those are factors that can point to a beginning of a change in attitude," according to BusinessWeek.
Wheat prices were also under pressure by rain that continues to thwart wheat harvesting in western Europe, slowing field work and raising concerns over how badly the crop will be damaged in France and Germany, two major exporters, and if there will be enough crop of sufficient quality to sell to overseas markets, reports Reuters.
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