Wheat price marginally above 5-year low

The wheat price continued on its downward trajectory yesterday. By the close of trading, US wheat was priced 2.9% down at 465 US cents per bushel, and is thus trading only marginally above the five-year low it recorded in May. According to figures from the US Department of Agriculture (USDA), weekly US wheat exports fell short of expectations at 277,000 tons, notes Commerzbank. The fact that the US dollar appreciated again recently makes it increasingly difficult for the US to find international buyers for US wheat. 

At the same time, competing wheat supply from Europe is plentiful. Canada likewise released some surprisingly positive data yesterday. According to Statistics Canada, wheat stocks as per 31 July - in other words prior to the start of the current crop year - totalled 7.1 million tons. Although this was 32% down on the year-on-year figure, only 6.5 million tons had been estimated.