by Mark Weinraub
CHICAGO (Reuters) – U.S. wheat futures sank on Wednesday, weighed down by signs of abundant supplies and dim prospects for U.S. exports, traders said.
The front-month K.C. hard red winter wheat contract shed 2.5 percent and hit its lowest in more than eight years, while the most actively traded Chicago Board of Trade December soft red winter wheat contract touched contract lows.
A firm dollar, which makes U.S. commodities relatively more expensive to overseas buyers, cast a bearish tone across the sector. Dollar strength tends to hit wheat the hardest, as export deals for the grain are priced in local currencies.
The front-month K.C. hard red winter wheat contract ended down 10-1/2 cents at $4.48 a bushel. Prices bottomed out at $4.45-1/2, their lowest since April 4, 2007.
But traders said the declines were unlikely to drum up much interest from overseas buyers for U.S. supplies. Egypt's GASC, the top buyer of wheat, tendered to buy an unspecified amount of wheat after the closing bell. U.S. wheat was not even offered in the tenders issued by Egypt last week.
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Source: Reuters
