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Another down week for wheat

Story Added : 02nd February 2010

International futures continue to retreat under pressure from an abundance of stocks, uncertain nearby demand and a lack of any weather threats to nth hemisphere winter crops. Current crop futures fell 24US¢/bu to close last night at 475US¢/bu, while new crop futures contracts were off 20US¢/bu and back to 544US¢/bu.

With support at around 500US¢/bu violated on old crop futures the next target is 450US¢/bu. After a flurry of activity last week as importers moved to cover immediate needs on the recent price fall, the lack of follow through buying this week saw prices resume the trend lower.

Some of the impact on local values has been sheltered by the lower $A. The $A has fallen through 90US¢ on expectations of slowing Chinese and global growth. The RBA did exporters a favour leaving interest rates unchanged today and this saw the $A trade back down to the bottom of its most recent trading range around 88US¢.

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