Wheat price slips on news of surprise large U.S. crop

September 11, 1992|By Bloomberg Business News

CHICAGO -- The price of wheat for delivery in December slipped yesterday, and prices likely will fall further in reaction to a report from the Agriculture Department that said this year's wheat crop will be larger than expected, analysts said.

Elsewhere, the price of cotton for delivery in December fell to a new life-of-contract low for the third consecutive session. Copper and platinum futures plunged while silver futures slipped. Gold futures were unchanged, and energy futures closed mixed.

Wheat for December delivery finished 3 cents lower at $3.39 a bushel at the Chicago Board of Trade.

After trading closed, the USDA estimated the 1992-1993 wheat production at 2.407 billion bushels, higher than most estimates.

"The numbers are negative for wheat, but the market is still waiting to see what demand looks like, especially with regard to the Russian allocations," said Steve Freed, of ADM Investor Services in Chicago.

Dan Basse, an analyst with AgResources Co. in Chicago, said President Bush could announce the Russian credit package today.

Initially, wheat futures prices sank amid concern about export sales, analysts said. Worries were heightened by a report from the state-run China News Agency, quoting a Chinese official saying China should halt U.S. wheat imports unless the United States drops its decision to sell F-14 jets to Taiwan. China claims sovereignty over Taiwan.

China has imported U.S. wheat in recent years despite large harvests of its own, leading to overstock, the Chinese official said.

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