Chicago wheat futures fell for an eighth consecutive day on Friday, closing at their lowest level in a month. The most-active wheat contract on the Chicago Board of Trade (CBOT) settled at $6.27-1/2 per bushel, down 12 cents.
The decline marks a 7.5% drop for the week, the biggest weekly loss since July 2023. The price decline was primarily driven by Turkey’s announcement that it will halt wheat imports from June 21 until at least October 15 to protect domestic producers.
Turkey is a key destination for Black Sea wheat, notably Russian wheat, and the absence of Turkish demand could lead to fiercer competition in other export markets, according to traders. “It’s another knock on potential export business, and that’s not good,” said Mark Gold, founder of Top Third Ag Marketing.
Analysts also expect a strong U.S. winter wheat crop to boost supplies of the grain, while concerns over Russian crop damage from May frosts have eased. A Reuters poll estimated the U.S. Department of Agriculture’s June 12 crop production report will forecast a winter wheat harvest of 1.298 billion bushels, above the May estimate.
Corn and soybean futures also edged lower, with the CBOT corn contract settling 3-1/4 cents lower at $4.48-3/4 per bushel and the soybean contract closing down 20-3/4 cents at $11.79-1/4 per bushel. The stronger U.S. dollar following a strong jobs report made U.S. exports less competitive.
Favorable crop conditions in the United States, where farmers have made steady progress in planting corn and soybeans while starting winter wheat harvesting, also contributed to the downward pressure on prices.