When it rains, it pours.
Wheat futures snapped its two-day gain and tumbled on Wednesday session as precipitation in US plains poured down amount of pressures to crops ahead of the important USDA data to be released on January 12, Thursday.
March Chicago wheat futures finished 2.1% down and was last trading at $4.18 ¾ a bushel while the March Kansas hard red winter wheat futures gave up 1.7% to settle at $4.30 ¾ a bushel, as markets responded to weather forecast, with rain and snow heading to the country’s main hard red winter wheat growing area.
The March Minneapolis wheat futures also lost ground as it slipped 0.3% at $5.59 ¾ a bushel, despite the good demand and strong export for the commodity.
Moisture has moved to the Southern plains since Monday and pressure from easing dryness in the plains sent fears to the traders of the high-protein commodity.
More pressure have been hounding wheat futures as markets strapped in for the release of the final report from the US Department of Agriculture about the last estimate of the 2016 crop size, which will also include revised yields on corns and soybeans.
There are also growing concerns on expectations on the record-hitting production in South America, which will give a preview of what the markets can look forward next year. Production in Europe also added some jitters on wheat futures as deep frosts in Black Sea grain-exporting countries have been forecasted.