Cheap Russian grain could push wheat futures down

Wheat futures may fall in the next three months as Russian grain that’s less expensive than U.S. and European supplies becomes available, and corn prices will be determined by weather, Rabobank International said.

Wheat futures will average $7.05 a bushel in the third quarter this year and $7 a bushel in the fourth quarter, down from $7.53 a bushel from April through June, Rabobank said. Corn prices will probably decline from second-quarter average price of $7.33 a bushel, averaging $7 in the third quarter and $6.80 in the fourth, according to the report.

Russia on July 1 ended an export ban on grains after the worst drought in 50 years curbed production last year. Importers will turn to cheaper supplies of wheat, cutting exports from the U.S. and Europe and bringing down prices, Rabobank said. Corn prices may be underpinned by hot, dry weather.