Wheat heads for worst week since June on global oversupply

Global wheat markets are heading for their steepest weekly decline since June, with prices down around 4% as ample grain supplies worldwide keep a bearish tone in place heading into the year-end holidays.

Prices for wheat, corn and soybeans were little changed on Friday, as markets lacked fresh news to spur trading activity. With the year drawing to a close, participants remained cautious and largely stayed on the sidelines.

The US Department of Agriculture reported sales of 134,000 tonnes of US soybeans to China. The world’s largest commodities importer is on track to meet its commitment to buy 12 million tonnes of US soybeans in the coming months, while a recent uptick in China’s wheat and corn imports has been viewed as a potentially supportive signal for US grain demand.

However, large US harvests and favourable weather conditions in Brazil continue to cap any price recovery. Farmers have also been delaying sales while awaiting details of the Trump administration’s expected $12 billion aid package, due to be outlined next week.

“Buying interest in the market ahead of the weekend is minimal,” said Karl Setzer, an analyst at Consus Ag Consulting, highlighting the subdued trading environment.

Wheat prices are facing additional pressure from rising production estimates in Argentina, intensifying competition among major global exporters. China recently purchased a rare cargo of Argentine wheat while cancelling a US shipment. At the same time, the USDA raised its outlook for global wheat stockpiles this month amid swelling harvests in other key producers, including Canada and the European Union, reinforcing perceptions of an oversupplied physical market.

Tags: prices, wheat