By Joanna Levin
WHEAT prices in the USA sank to a five-year low this week, with many analysts expecting supplies and poor export demand to drive the market even lower.
Almost 90% of the winter wheat crop is already headed, compared with a five-year average of 77%. The harvest is well under way in the southern Plains and there are reports of higher-than-expected yields and excellent protein content.
Favourable weather conditions for the spring crop and poor export demand are also pressuring prices. More than 90% of the spring wheat crop has emerged, well ahead of schedule.
Many exporters are concerned about the possible loss of Pakistani business because of economic sanctions. The Chicago July futures contract settled yesterday (1 June) at $2.84/bushel, down 14¢ on the week.