CBOT Wheat Slides to 3.5-Month Low on Technical Selling

what happened

CBOT wheat futures fell on Tuesday to their lowest level in over three months. Pressure came from technical selling, fund liquidation and weaker corn and soybean prices that spilled over into wheat.

The US Department of Agriculture reported that winter wheat plantings were 63% complete as of Sunday, below the five-year average of 69%. A Reuters poll had expected 65%. Traders are still weighing disruptions to Black Sea grain exports, but Russian and Ukrainian shipments are moving via alternative routes, and Australia's harvest and upcoming Argentine supplies give buyers plenty of choice.

The December CBOT soft red winter contract (WZ26) closed 12 cents lower at $6.43 1/4 a bushel, after selling accelerated when it broke below its 200-day moving average. December KC hard red winter wheat (KWZ26) traded 9.5 cents lower at $6.90 a bushel, and December Minneapolis spring wheat (MWEZ26) closed 7.75 cents lower at $6.61 3/4.

why it matters

For grain markets this is a sign of weakness, since a break below the 200-day average often triggers further selling. For farmers and exporters, lower futures mean pressure on revenue, and planting running behind the average could become a factor if weather worsens.

market impact

Wheat and corn: selling pressure and wider supply from Australia and Argentina push prices lower

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