Global outlook for wheat set to worsen as supplies build up

Chicago

HEDGE funds are so down on wheat that even the worst price plunge in 29 years isn't leaving them satisfied.

Instead, a global glut has money managers ready for more losses and sticking with a net-bearish outlook for seven straight weeks. World inventories before the start of next year's harvest are expected to climb to an all-time high as farmers reap bigger crops in the US, Russia and Ukraine.

Wheat futures have tumbled 21 per cent since the end of June, heading for the worst quarterly loss since 1986. American farmers are particularly struggling because they're saddled not just with bigger stockpiles, but also a rising dollar. The stronger cur…