Concern mounts that an economic slump could hamper demand for farm commodities, as wheat dropped to levels not seen since before the Russia-Ukraine war.
On Thursday, two key reports from the US Department of Agriculture indicated larger-than-expected grain supplies. Soybean plantings fell below a prior estimate for what would have been the most domestic seedings on record, but futures fell as much as 4.3% in Friday trading.
Expectations for ample harvests in other key regions have eased supply concerns because of the growing anxiety about future demand, despite uncertainty over the Russia-Ukraine war and its impact on agriculture exports. Traders are positioning themselves ahead of a three-day holiday weekend in the US.
The buyers are not to be found right now, according to Arlan Suderman, chief commodities economist at StoneX. Nobody wants to step in front of a freight train. Most active wheat futures fell by 4% to $8.49 a bushel as of 10: 29 a.m. in Chicago, the lowest since February 23, a day before Russia's invasion of neighboring Ukraine upended commodity markets. In the days after the attack, wheat jumped to the highest level on record, leading to worsening food inflation, grain hoarding and fears of severe supply shortages.
Corn futures fell as much as 2.5% to $6.0425 a bushel, the lowest since January. Soybeans plunged as much as 4.3% to touch $13.9575 a bushel.
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