Wheat futures closed on the downside the second straight quarter. The reason of lowering has become the corn futures sales and weak export demand on cereals.
Corn futures dropped sharply on Friday, and the sales stopped after moving down by 30 cents that comes as a day restriction for this contract.
The traders were dissappointed by the Agriculture Department report of the USA, according to which the cereals reserves have exceeded the market expectations by 20%. Amid this the big funds sales have renewed. Wheat futures followed the corn price dynamics as the both cereal crops are used for fattening. In addition, in the wheat sector there is a lack of fundamental growth factors: export data showed a weak demand, and the rains in Russia have weakened the fears regarding the future harvest.
At this moment the wheat prices down by 22% below the August maximum when the futures soared fast after the announcements that Russia has introduced an export embargo for cereals due to a strong drought.
By the end of the deals on
By the end of the deals on CBOT the December wheat contract reduced by 2.8% to 6.55 dollar/bushel. Earlier during the session the futures reached the deals minimum at 6.46 1/2 dollar/bushel.
