Wheat prices moving toward largest slump in three years as second-largest harvest on record bolstering global stocks, easing shortages; prices likely to fall to US$5.90/bushel before end of December, survey says
November 3, 2011
– Wheat prices are moving toward the largest slump in three years as the second-largest harvest on record is bolstering stockpiles and easing shortages that pushed food costs to an all-time high, Bloomberg reported Nov. 3.
Wheat dropped 21% to US$6.295 per bushel in Chicago this year, and prices will likely fall as low as US$5.90 before December ends, a median estimate of nine analysts and traders surveyed by Bloomberg shows.
Global inventories will reach the highest in a decade, as supply in the 12 months ending June 30 will grow 5% to 684 million tonnes, according an estimate by the International Grains Council.
Production is growing after prices gained 47% last year and farmers decided to plant more grain, and Russian and Ukraine recovered from a devastating drought.
Lower prices for wheat will ease strains caused by the increasing price for corn and rice.
The primary source of this article is Bloomberg, New York, New York, on Nov. 3, 2011.