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Wheat Retreats After Massive Rally

July 18, 2014 at 22:12 by Vladimir Vyun

Futures for wheat sank today following yesterday’s huge 2.4 percent jump. It was the first drop in a week. The grain retreated after the US Department of Agriculture reported that global stockpiles will expand by 2.8 percent in 2015, reaching the highest level since 2012.

Wheat prices rallied previously on concerns about supply from Russia and Ukraine, caused by the crash of a Malaysian passenger jet over Ukraine, close to the Russian border. Both the Eastern European countries combined account for about 17 percent of world exports. Yet it looks like global supply should outweigh whatever disruption to output may happen.

Futures for delivery of wheat in September tumbled as much as 3.36 percent to settle at $5.3225 per bushel on CBoT today.

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