By Joanna Levin
PUNDITS who hoped wheat was due for a rebound after hitting a five-year low last week were wrong. The market is now at its lowest point since July 1991, with little sign of respite. Favourable crop conditions for both winter wheat harvesting and spring crop growth are driving down the futures market.
The Chicago July futures contract closed on 5 June at $2.801/4/bushel, down 4¢ on the week and promptly lost another 4.75¢ on Monday to close at $2.751/2/bushel.
Already 9% of the winter wheat crop is harvested, compared with a five-year average at this time of year 4%, and early reports suggest better-than-expected crop yields. As for the spring crop, 98% is reported to have emerged thanks to ideal weather conditions, well ahead of the 85% norm.