International wheat futures have dropped to their lowest levels in a decade.
The Chicago Board of Trade (CBOT) December contract sitting at US399 cents a bushel, after hitting a low of US383c/bu, and for the first time in a decade the quote has dropped below US$4/bu.
A glut of wheat across the globe, combined with technical selling on the prospect of the United States raising its interest rates, which correlates with lower grains, have sent markets crashing.
No longer insulated by a declining dollar, Australian wheat futures have also felt the pain, with the ASX east coast wheat values hitting a seasonal low of $232 a tonne last week.
Market Check assistant pool manager Nick Crundall said the silver lining was that Australian wheat was competitive on the world stage.
“US wheat is the cheapest in the world, and while there is a positive basis between Australian and US wheat, we are finding a home for our wheat at current values, although we are having to look hard for buyers,” Mr Crundall said.
He said the dip in US futures had not been reflected in other key wheat producing areas and expects to see a market correction.
