Global wheat glut may be washed away by rain in India

The global wheat glut that’s kept prices trapped in a bear market is showing signs of easing after poor weather reduced harvest expectations in India and Australia.

World inventories will be 237.6 million metric tonnes, down from 238.9 million tonnes estimated in February, the US Department of Agriculture said Wednesday in Washington. The crop in India, the world’s biggest grower after China, will be 86.53 million tonnes, down from last month’s forecast of 88.94 million, the agency said. Wheat futures rose after the report.

While the figures show some relief from overwhelming supplies, the world is still saddled with large stockpiles.

Wheat prices in Chicago are heading for a third straight quarterly slump, the longest skid since 2013.

American farmers, coping with a stronger dollar, are having an even harder time finding buyers for their relatively expensive supplies.

Ballooning inventories have pushed world food costs lower as declines in commodities help keep a lid on inflation.