Price correction in wheat due to higher US stocks and higher US acreage

After having risen sharply in recent days, the price of US wheat found itself under significant pressure yesterday and fell by 4.4% to 588 US cents per bushel.

This was clearly the price's response delayed by one day to the US inventory and acreage figures published on Tuesday by the US Department of Agriculture (USDA).

They showed that wheat stocks at the beginning of June, i.e. at the beginning of the new crop year, totalled 753 million bushels, which surpassed the expectations of market participants by a good 40 million bushels. 

What is more, the USDA revised its estimate of the wheat acreage up by 1.3% to 56 million acres as compared to its March estimate because warm and dry weather conditions in April and May facilitated the planting of spring wheat.