A preliminary measure of Chinese manufacturing slipped to its lowest level in four months. These signs of slowdown turned the trading sentiment to bearish in most commodities.
Good weather and rain prompted a steep decline in wheat prices in the first half of the week. Kansas, the largest winter-wheat grower in the US, has received as much as 1.5 inches of rain in the first half of the week, while other wheat producing areas in Oklahoma, the Texas Panhandle and southern Nebraska received light to moderate showers.
Wheat is the fourth-largest crop in the US and in case the weather remains good, the weather-related premium in the price is likely to reduce leading to a drop in the prices of wheat futures. However, encouraging export data released by the US Department of Agriculture has provided support to prices.
As per the data, US exporters sold 5.4 lakh metric tonne of wheat during the week ended March 15, 55% higher from the previous week. Traders feel that a significant drop in prices is likely to prompt exporters to order more.