Wheat prices fall as supply prospects improve

The U.S. Department of Agriculture raised its forecast for global wheat trade. This adjustment was made particularly because of increased exports from the Black Sea region.

Last month's agreement extension for safe passage has reduced the recent price increase. Thus, global food inflation may ease over time. The decline in prices was also noticeable on the back of Australia's high wheat harvest. 

According to Frontier Futures broker Joe Nussmeier, the official reports show a rather encouraging result. This conclusion was made even despite concerns about the deterioration of grain quality. Increased flooding in some parts of Australia could have affected the suitability of the commodity. 

Rich Nelson, chief strategist at commodity brokerage Allendale Inc., explained that further pressure on prices could come from possible heavy rains in major producing regions of the United States. Some states, including Kansas, may be exposed to heavy rains. 

In addition, long positions on corn contracts fell sharply to the lowest level in more than two years.