By Joanna Levin
WHEAT prices have traded sideways in the USA over the past week, dampened by weakness in competing markets and continuing better weather.
In Chicago, the September futures contract closed on Tuesday (21 July) at 271.5¢/bushel, down 4.25¢ from Monday and down 0.5¢ from the close of 271¢/bushel a week earlier.
Many farmers and futures traders expect the severe oversupply in the USA to further pressure prices.
Much of the winter wheat crop is still unsold and there are already 30.5 million bushels of deliverable wheat stored in Chicago and Toledo.
Grain elevators in major wheat producing states such as Kansas are overflowing.
The imminent harvest in Europe and Australia is exacerbating the situation, as are signs of declining demand from major export destinations such as Egypt and Pakistan.
Meanwhile, wheat is also coming under further pressure because of weakness in the US maize market. Wheat prices tend to track maize to remain competitive as an alternative product for animal feed.