Monday, July 19, 2010

Wheat Prices Drop as Corn Streak Ends

After concerns over the corn harvest in the Midwest was alleviated with a positive weather forecast of wetter and cooler, corn prices plunged, and wheat prices followed them down, although at a modest level.

Concerns over the drought in Russia have brought support to wheat prices, along with other weather concerns around the globe.

But as in other recent years, so many countries have started growing wheat successfully, that the supply has outstripped demand, keeping prices under pressure for years.

Now the idea that wheat may have to replace corn in animal feed will probably be laid aside, putting more downward pressure on the price of the grain.

Wheat for September delivery dropped 5 cents to finish at $5.8225 a bushel.

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