Wheat Price May Fall on Bigger Russian Crop

Wheat may fall on higher grain production in Russia and a slump in other commodities amid tumult on Wall Street.

The Agriculture Ministry said Monday that 90 percent of the country's wheat crop was in "good" condition.

Regions in south Russia started spring sowing two weeks earlier than average this season because of milder weather, the ministry said in an e-mailed statement. About 173,000 hectares had been sown with the spring crop as of Monday, the ministry said.

The UBS Bloomberg Constant Maturity Commodity Index declined Monday as much as 3.2 percent. U.S. equities plunged to the lowest since July 2006 after JPMorgan's purchase of Bear Stearns for less than one-tenth of its value last week sent financial shares falling around the world.

For Russia, Ukraine, Canada and the United States, "we're all waiting to see what kinds of crops they'll have," said Vince Ambrose, a trader at MF Global in Chicago. "Most commodities are down. These outside markets are going to have a major influence."

Wheat futures for May delivery rose 13.5 cents, or 1.1 percent, to $12.05 per bushel overnight on the Chicago Board of Trade.

The price reached a record $13.495 per bushel on Feb. 27 as demand increased and adverse weather curbed global production.