By Joanna Levin
CONTINUED expectations of a bumper US harvest conspired to drag wheat prices even lower last week.
The Chicago futures contract for May lost 6¢ to close at a contract low of $2.90/bushel on Friday. Ideal weather conditions mean that the spring wheat crop is already 65% planted, compared with only 12% this time last year and a five-year average of 29%.
With exports running at poor levels, some US congressmen from farming states are pushing to resume US wheat exports to Iran.
Traders say there is little hope of further subsidised exports to South Korea, and US officials have indicated they will probably refuse further agricultural credits to that country following the $1.5 billion already filled since last September.