Wheat Woes Continue, Plunge to Three-Year Low

Good weather has resulted in a strong wheat crop, and consequently wheat futures plunged to a 3-year low as harvest in the southern U.S. Great Plains States begins.

Precipitation was the major factor in the bumper yields, as there was four times as much rain in the last month than normal, according to National Weather Service data.

Wheat futures for July delivery fell 3.5 cents, 0.8 percent, to $4.3225 a bushel on the Chicago Board of Trade, after reaching $4.31 a bushel, the lowest price for a most-active contract since April 3, 2007.

With the growing number of wheat farmers around the world and bumper wheat crops, there continues to be little reason prices will increase going forward, and makes you wander why farmers continue to plant the grain, other than government subsidies.