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Tampilkan postingan dengan label Wheat. Tampilkan semua postingan
03.24
Wheat Futures December Rose
Written By mine on Minggu, 21 Oktober 2012 | 03.24
Wheat futures for December 2012 delivery rose 0.5 percent to settle at $8.725 a bushel at 2 p.m. on the Chicago Board of Trade. The price has gained 34 percent this year and rose 1.8 percent this week. Wheat futures climbed for a third day on signs that Ukraine will limit exports, and on speculation that dry weather in the southern U.S. Great Plains will curb production. Corn advanced, while soybeans fell.
Ukraine’s wheat exports will reach 5 million metric tons by Nov. 15, Volodymyr Klymenko, the head of the country’s Grain Association, said today. That may prompt the government to introduce shipment limits, he said. Parts of Kansas, the biggest U.S. producer of winter varieties, have received little rain in the past month, National Weather Service data show.
Ukraine’s wheat exports will reach 5 million metric tons by Nov. 15, Volodymyr Klymenko, the head of the country’s Grain Association, said today. That may prompt the government to introduce shipment limits, he said. Parts of Kansas, the biggest U.S. producer of winter varieties, have received little rain in the past month, National Weather Service data show.
10.28
Wheat Prices CBOT jump 34 percent
Written By mine on Sabtu, 20 Oktober 2012 | 10.28
Wheat prices on the Chicago Board of Trade, the global benchmark, have jumped 34 percent this year, the best performance among 24 commodities on the Standard & Poor’s GSCI Index. The December contract gained 1.2 percent to $8.7875 a bushel at 9:24 a.m. local time. In Paris, milling wheat for January delivery rose 1.2 percent to 261.50 euros ($340.71) a ton, after earlier touching 262.25 euros, the highest in a week.
Traders should be “cautious” when signing wheat export contracts, Bisyuk said in an e-mailed statement after today’s meeting, stopping short of saying the government plans to implement official restrictions. Ukraine had exported 7.1 million tons of grain this season, as of Oct. 16, he said.
“Ukraine just doesn’t have enough grain to continue the pace for the rest of the season,” Matt Ammermann, a risk management consultant with INTL FCStone Inc. in London, said by phone today. “It seems like the market has been talking about this for a while. The government has been addressing the situation over the past few months, so I don’t think it catches the market too much by surprise.”
Global inventories of wheat, soybeans and corn may drop to 347.8 million tons by the end of the 2012-13 season, according to the USDA, a five-year low, as dry weather cut crop yields from the U.S. to Europe to Australia.
Traders should be “cautious” when signing wheat export contracts, Bisyuk said in an e-mailed statement after today’s meeting, stopping short of saying the government plans to implement official restrictions. Ukraine had exported 7.1 million tons of grain this season, as of Oct. 16, he said.
“Ukraine just doesn’t have enough grain to continue the pace for the rest of the season,” Matt Ammermann, a risk management consultant with INTL FCStone Inc. in London, said by phone today. “It seems like the market has been talking about this for a while. The government has been addressing the situation over the past few months, so I don’t think it catches the market too much by surprise.”
Global inventories of wheat, soybeans and corn may drop to 347.8 million tons by the end of the 2012-13 season, according to the USDA, a five-year low, as dry weather cut crop yields from the U.S. to Europe to Australia.
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10.14
Wheat Production Argentina in 2012
Wheat production in Argentina may drop to 11.5 million tons. Argentina wheat production is set to dip by 17 percent in 2012. The farmer's shift to other lucrative crops and export curb by govt. has caused the fall.
It may boost wheat price in global market. Area coverage under wheat in Argentina is 3.7 million ha. lower by 20% from last year.
It may boost wheat price in global market. Area coverage under wheat in Argentina is 3.7 million ha. lower by 20% from last year.
22.15
Grain Production 2012 Estimated Low in Russia
Written By mine on Selasa, 26 Juni 2012 | 22.15
Grain production in Russia for 2012 is estimated to be around 85 million tons lower than last years harvest of 94.2 million tons, lower grain harvest can be attributed to dry weather conditions in the country which delayed the sowing of wheat crops. As per analysts, the production of may drop further to 50 million tons from earlier estimates of 53 million tons for 2012.
According a USDA report, Russia’s wheat production may fall to 53 million metric tons in the year starting July 1 from an estimated 56.2 million tons in the current period. In Chicago Board of Trade (CBOT), wheat for July delivery is trading at 711 6/8 cents per bushel and in India's National Commodity and Derivatives Exchange (NCDEX), the commodity traded up 0.26% to Rs 1154 per qtl on 26th June at 15:15 IST.
Wheat production in Russia likely to affect the price of the commodity globally as the country is the fourth largest producer of wheat in the worlds.
Russia's grain carryover stock amount to 51 million tons while domestic consumption for the next agricultural year is estimated at 72.7 million tons. And also the country would be exporting around 20 million tons of grains during the period.
According a USDA report, Russia’s wheat production may fall to 53 million metric tons in the year starting July 1 from an estimated 56.2 million tons in the current period. In Chicago Board of Trade (CBOT), wheat for July delivery is trading at 711 6/8 cents per bushel and in India's National Commodity and Derivatives Exchange (NCDEX), the commodity traded up 0.26% to Rs 1154 per qtl on 26th June at 15:15 IST.
Wheat production in Russia likely to affect the price of the commodity globally as the country is the fourth largest producer of wheat in the worlds.
Russia's grain carryover stock amount to 51 million tons while domestic consumption for the next agricultural year is estimated at 72.7 million tons. And also the country would be exporting around 20 million tons of grains during the period.
19.43
USDA Downgrade Wheat Estimate 3m tonnes to 53m tonnes in Russia
Written By mine on Rabu, 20 Juni 2012 | 19.43
The USDA downgraded its estimate for the wheat harvest in Russia by 3.0m tonnes to 53.0m tonnes, citing the "hot and dry weather" in European parts of the country which sent world prices soaring last month. The USDA lowered its estimate for this season's carryout inventories by 2.3m tonnes to 185.8m tonnes, a four-year low but, with a stocks-to-use ratio of 27.2%, still comfortable by historical standards.
The USDA, in monthly crop revisions, also cut 300,000 tonnes from its estimates for the US crop, saying "continued dry conditions in Colorado and Nebraska resulted in lower forecasted yields", and downgraded the Turkish harvest to a five-year low of 16.5m tonnes, citing expectations of "well-below-average" yields.
"Persistent dryness and excessive heat during April and most of May hampered vegetative growth for winter wheat in Russia's Southern District, which accounts for about half of the country's winter wheat output," the USDA said.
"The April heat was likely more detrimental to potential yield than was the extended dryness, because the high temperatures essentially brought an end to the development of additional productive tillers, or stems, and secondary roots."
Conditions have been "poor in parts of the southern Central District as well", the department added, if adding that "yield prospects could improve with favourable weather".
A winter characterised by heavy snow, late frost, hail, and a "widespread outbreak of snow mould" had caught out growers who had planted less hardy varieties of wheat this year.
The USDA also lowered by 1.0m tonnes to a five-year low of 131.0m tonnes its estimate for the European Union crop, the world's biggest.
"Largely unfavourable conditions have existed in central Europe for much of the growing season with dryness in autumn, frost damage during winter, and early spring dryness."
While raising its estimate for the wheat yield in Germany, the EU's second-ranked producer, in line with revived hopes voiced by other analysts, the USDA cut its forecast for the country's harvest to 21.8m tonnes, citing lower expectations for harvested area.
Crop tours by USDA officials in central Europe last month "observed dry soils, short plants, low tiller counts, and small grain heads".
Coupled with a smaller estimate for inventories at the close of the 2011-12 season, newly-finished in many countries, the downgraded combined to cut world wheat supplies by 7.0m tonnes heading into the new marketing year.
However, the impact on stocks at the close of 2012-13 was mitigated somewhat by lower forecasts for consumption of the grain, as it is replaced by corn in livestock feed rations.
The stocks-to-use ratio, in indicating the level of competition needed to secure supplies, is viewed as a key pricing tool.
Chicago wheat, the world benchmark, closed 2.2% lower at $6.16 ½ a bushel, for the benchmark July contract.
Heat, rather than dryness, has been the enemy of Russian wheat, while European prospects are being depressed by "dry soils, short plants and small grain heads", US officials said, as they cut 7.0m tonnes from their estimates for world supplies.
The USDA, in monthly crop revisions, also cut 300,000 tonnes from its estimates for the US crop, saying "continued dry conditions in Colorado and Nebraska resulted in lower forecasted yields", and downgraded the Turkish harvest to a five-year low of 16.5m tonnes, citing expectations of "well-below-average" yields.
"Persistent dryness and excessive heat during April and most of May hampered vegetative growth for winter wheat in Russia's Southern District, which accounts for about half of the country's winter wheat output," the USDA said.
"The April heat was likely more detrimental to potential yield than was the extended dryness, because the high temperatures essentially brought an end to the development of additional productive tillers, or stems, and secondary roots."
Conditions have been "poor in parts of the southern Central District as well", the department added, if adding that "yield prospects could improve with favourable weather".
A winter characterised by heavy snow, late frost, hail, and a "widespread outbreak of snow mould" had caught out growers who had planted less hardy varieties of wheat this year.
The USDA also lowered by 1.0m tonnes to a five-year low of 131.0m tonnes its estimate for the European Union crop, the world's biggest.
"Largely unfavourable conditions have existed in central Europe for much of the growing season with dryness in autumn, frost damage during winter, and early spring dryness."
While raising its estimate for the wheat yield in Germany, the EU's second-ranked producer, in line with revived hopes voiced by other analysts, the USDA cut its forecast for the country's harvest to 21.8m tonnes, citing lower expectations for harvested area.
Crop tours by USDA officials in central Europe last month "observed dry soils, short plants, low tiller counts, and small grain heads".
Coupled with a smaller estimate for inventories at the close of the 2011-12 season, newly-finished in many countries, the downgraded combined to cut world wheat supplies by 7.0m tonnes heading into the new marketing year.
However, the impact on stocks at the close of 2012-13 was mitigated somewhat by lower forecasts for consumption of the grain, as it is replaced by corn in livestock feed rations.
The stocks-to-use ratio, in indicating the level of competition needed to secure supplies, is viewed as a key pricing tool.
Chicago wheat, the world benchmark, closed 2.2% lower at $6.16 ½ a bushel, for the benchmark July contract.
Heat, rather than dryness, has been the enemy of Russian wheat, while European prospects are being depressed by "dry soils, short plants and small grain heads", US officials said, as they cut 7.0m tonnes from their estimates for world supplies.
20.04
Wheat Inventories Fall, Wheat Futures May delivery Rose
Written By mine on Sabtu, 31 Maret 2012 | 20.04
Wheat inventories as of March 1 fell 16 percent to 1.201 billion bushels from a year earlier. The average estimate by analysts in the Bloomberg survey was 1.25 billion.
Wheat futures for May delivery rose 7.9 percent to settle at $6.6075 a bushel in Chicago, the biggest gain since Oct. 11. Most-active futures rose 1.2 percent during the past three months.
On the Minneapolis Grain Exchange, spring-wheat futures jumped the most in 10 months after the USDA said farmers will cut plantings to seed more corn, soybeans, barley and other crops.
Spring-wheat planting will fall to 11.976 million acres from 12.394 million a year earlier, the agency said. Analysts projected 13.35 million, on average.
“People expected more spring-wheat planting, and farmers say they want to plant other crops,” Dave Marshall, a farm- marketing adviser at Toay Commodity Futures Group Inc. in Nashville, Illinois, said in a telephone interview. “That’s a sign that prices are not high enough to compete.
Wheat futures for May delivery rose 7.9 percent to settle at $6.6075 a bushel in Chicago, the biggest gain since Oct. 11. Most-active futures rose 1.2 percent during the past three months.
On the Minneapolis Grain Exchange, spring-wheat futures jumped the most in 10 months after the USDA said farmers will cut plantings to seed more corn, soybeans, barley and other crops.
Spring-wheat planting will fall to 11.976 million acres from 12.394 million a year earlier, the agency said. Analysts projected 13.35 million, on average.
“People expected more spring-wheat planting, and farmers say they want to plant other crops,” Dave Marshall, a farm- marketing adviser at Toay Commodity Futures Group Inc. in Nashville, Illinois, said in a telephone interview. “That’s a sign that prices are not high enough to compete.
07.11
Iran Wheat Import 2012 from America
Written By mine on Selasa, 27 Maret 2012 | 07.11
Wheat is up just 1.1% in the futures market in 2012, to $6.595 per bushel, well below last year's peak near $9. Iran is ramping up imports of wheat, including rare purchases from the U.S., in a sign Tehran is building a strategic stockpile of grain in anticipation of harsher sanctions or even military conflict.
The U.S. sold Iran 180,000 tons of hard red winter wheat, widely used to make bread. Before 2008, when Iran bought U.S. wheat when its crops were ravaged by drought, the country hadn't bought U.S. wheat for almost three decades. The country has bought wheat from the U.S., Australia, Brazil, and Kazakhstan in the past few months, and is in talks on what could be a major wheat buy from India, according to market watchers and official data.
Such a maneuver could bolster the Islamic regime at a time when the West is increasing pressure over Iran's disputed nuclear program, including curbing purchases of Iran's oil and freezing its government banks out of international networks. Current U.S. sanctions allow companies to sell food to Iran.
Access to wheat is crucial for the country, enabling it to prevent spikes in the cost of bread, a key staple among its 78 million citizens. Such spikes have in the past led to social unrest in Iran and elsewhere in the Middle East.
Iran is likely getting ahead of any tightening of sanctions, as well as a further decline in its currency, said Paul Sullivan, a Middle East security expert and adjunct professor at Georgetown University. The Iranian rial has fallen 30% against the U.S. dollar in the past six months, making purchases in U.S. dollars more expensive. "It's clear they're worried about their currency declining and potential war ahead of them," Mr. Sullivan said. "The country is really being squeezed."
Recent dry weather in the region also may lend urgency to Iran's purchases, he said. Iran is due to start harvesting a new wheat crop in May, and could be concerned about lower production, said Chris Gadd, an agriculture analyst at Macquarie, in an email.
Traders are watching purchases by Iran, which often imports relatively little wheat. But wheat supplies are fairly robust at the moment, and the deals haven't sent prices soaring.
It is common for countries in conflict to continue to trade with each other. Still, the buys represent a striking contrast to the West's attempts to ratchet up pressure on Iran.
The U.S. Department of Agriculture estimates Iran will import 2 million metric tons of wheat in the year through June. That is a tenfold rise from a February estimate, and enough to cover 13% of Iran's annual consumption, according to USDA data. Industry officials say Iran is also negotiating to buy up to 3 million tons of wheat from India, but it isn't clear if that deal will come to pass.
This time around, the Iranian crop is relatively plentiful, observers say.
It isn't clear which firms are selling wheat to Iran currently, but major grain shippers Bunge Ltd., BG -0.71% of White Plains, N.Y., and Cargill Inc., based in Minneapolis, both say they sell agricultural commodities to Iran under provisions of the sanctions that allow for exporting food.
"We take great care to ensure that these sales respect both the spirit and the letter of the law while trying to make sure that ordinary people are not deprived of basic foodstuffs," Cargill said in a statement.
Bunge also said its exports to Iran are "in accordance with all applicable economic sanctions laws."
As sanctions expand, it has become increasingly difficult for Iran to arrange and pay for such purchases, Middle East businessmen and bankers say. Iranian banks typically send payments to the U.S. via a European or Middle Eastern bank. But some banks have stopped doing business with Iran out of fear of retribution from the U.S., they said.
The Europe-based organization that clears money transfers, known as Swift, this month banned 20 Iranian financial institutions from using its international bank-transfer system. Congress is debating sanctioning some of the few remaining Iranian financial institutions involved in such trade, which could choke off other avenues, regional businessmen and officials say.
Iranian officials haven't publicly commented on the wheat purchases. Officials in Tehran didn't respond to written requests for comment. A spokesman at Iran's mission to the United Nations didn't return calls.
Bread prices are politically sensitive in Iran, as they are across much of the Middle East, where flatbread is a staple. The price of a popular Iranian bread, known as nan-e sangak, has risen by about 30% in the past few months, according to Iranians.
Obama said he would "take no options off the table" to prevent Iran from getting a nuclear weapon. Iranian officials say its nuclear program isn't aimed at developing a nuclear weapon.
The U.S. sold Iran 180,000 tons of hard red winter wheat, widely used to make bread. Before 2008, when Iran bought U.S. wheat when its crops were ravaged by drought, the country hadn't bought U.S. wheat for almost three decades. The country has bought wheat from the U.S., Australia, Brazil, and Kazakhstan in the past few months, and is in talks on what could be a major wheat buy from India, according to market watchers and official data.
Such a maneuver could bolster the Islamic regime at a time when the West is increasing pressure over Iran's disputed nuclear program, including curbing purchases of Iran's oil and freezing its government banks out of international networks. Current U.S. sanctions allow companies to sell food to Iran.
Access to wheat is crucial for the country, enabling it to prevent spikes in the cost of bread, a key staple among its 78 million citizens. Such spikes have in the past led to social unrest in Iran and elsewhere in the Middle East.
Iran is likely getting ahead of any tightening of sanctions, as well as a further decline in its currency, said Paul Sullivan, a Middle East security expert and adjunct professor at Georgetown University. The Iranian rial has fallen 30% against the U.S. dollar in the past six months, making purchases in U.S. dollars more expensive. "It's clear they're worried about their currency declining and potential war ahead of them," Mr. Sullivan said. "The country is really being squeezed."
Recent dry weather in the region also may lend urgency to Iran's purchases, he said. Iran is due to start harvesting a new wheat crop in May, and could be concerned about lower production, said Chris Gadd, an agriculture analyst at Macquarie, in an email.
Traders are watching purchases by Iran, which often imports relatively little wheat. But wheat supplies are fairly robust at the moment, and the deals haven't sent prices soaring.
It is common for countries in conflict to continue to trade with each other. Still, the buys represent a striking contrast to the West's attempts to ratchet up pressure on Iran.
The U.S. Department of Agriculture estimates Iran will import 2 million metric tons of wheat in the year through June. That is a tenfold rise from a February estimate, and enough to cover 13% of Iran's annual consumption, according to USDA data. Industry officials say Iran is also negotiating to buy up to 3 million tons of wheat from India, but it isn't clear if that deal will come to pass.
This time around, the Iranian crop is relatively plentiful, observers say.
It isn't clear which firms are selling wheat to Iran currently, but major grain shippers Bunge Ltd., BG -0.71% of White Plains, N.Y., and Cargill Inc., based in Minneapolis, both say they sell agricultural commodities to Iran under provisions of the sanctions that allow for exporting food.
"We take great care to ensure that these sales respect both the spirit and the letter of the law while trying to make sure that ordinary people are not deprived of basic foodstuffs," Cargill said in a statement.
Bunge also said its exports to Iran are "in accordance with all applicable economic sanctions laws."
As sanctions expand, it has become increasingly difficult for Iran to arrange and pay for such purchases, Middle East businessmen and bankers say. Iranian banks typically send payments to the U.S. via a European or Middle Eastern bank. But some banks have stopped doing business with Iran out of fear of retribution from the U.S., they said.
The Europe-based organization that clears money transfers, known as Swift, this month banned 20 Iranian financial institutions from using its international bank-transfer system. Congress is debating sanctioning some of the few remaining Iranian financial institutions involved in such trade, which could choke off other avenues, regional businessmen and officials say.
Iranian officials haven't publicly commented on the wheat purchases. Officials in Tehran didn't respond to written requests for comment. A spokesman at Iran's mission to the United Nations didn't return calls.
Bread prices are politically sensitive in Iran, as they are across much of the Middle East, where flatbread is a staple. The price of a popular Iranian bread, known as nan-e sangak, has risen by about 30% in the past few months, according to Iranians.
Obama said he would "take no options off the table" to prevent Iran from getting a nuclear weapon. Iranian officials say its nuclear program isn't aimed at developing a nuclear weapon.
23.09
Wheat Futures Prices Fall, Canada boost Output
Written By mine on Jumat, 16 Maret 2012 | 23.09
Wheat futures fell on speculation that Canada will boost output amid rising stockpiles that are expected to reach the highest in 12 years.
Canadian farmers will plant 10 percent more wheat this year, Agriculture & Agri-Food Canada said yesterday. The area seeded with the grain will rise to 7.84 million hectares (19.4 million acres) and total production may rise 3.3 percent, the government said. Global stockpiles may reach 209.6 million metric tons this year, the highest since 2000, U.S. government data show.
“The only commodity that could be challenged this year is wheat with its important surplus,” said Jonathan Bouchet, a trader at Boman Capital SA in Geneva. “Weather issues in South America might push the grain complex to the upside for some weeks,” with wheat being the laggard, he said.
Wheat for May delivery declined 0.5 percent to $6.615 a bushel by 10:07 a.m. London time after yesterday surging as much as 3.7 percent. Futures are set for a 2.9 percent gain this week. Milling wheat on NYSE Liffe in Paris gained 0.6 percent to 215.50 euros ($281.30) a metric ton.
Wheat futures for May delivery advanced 0.7 percent to $6.695 a bushel at 9:45 a.m. in Chicago, after touching $6.73, the highest since March 5.
Canadian farmers will plant 10 percent more wheat this year, Agriculture & Agri-Food Canada said yesterday. The area seeded with the grain will rise to 7.84 million hectares (19.4 million acres) and total production may rise 3.3 percent, the government said. Global stockpiles may reach 209.6 million metric tons this year, the highest since 2000, U.S. government data show.
“The only commodity that could be challenged this year is wheat with its important surplus,” said Jonathan Bouchet, a trader at Boman Capital SA in Geneva. “Weather issues in South America might push the grain complex to the upside for some weeks,” with wheat being the laggard, he said.
Wheat for May delivery declined 0.5 percent to $6.615 a bushel by 10:07 a.m. London time after yesterday surging as much as 3.7 percent. Futures are set for a 2.9 percent gain this week. Milling wheat on NYSE Liffe in Paris gained 0.6 percent to 215.50 euros ($281.30) a metric ton.
Wheat futures for May delivery advanced 0.7 percent to $6.695 a bushel at 9:45 a.m. in Chicago, after touching $6.73, the highest since March 5.
12.48
Wheat Futures 2012 Higher, World Market uncertainly
Written By mine on Senin, 20 Februari 2012 | 12.48
Wheat futures end higher, rallying on exports and uncertainty about Ukraine's ability to supply the world market. Traders say fresh soft red winter sales to Egypt bolstered the notion that U.S. exports will increase thanks to supply disruptions in the Black Sea region. News that the Ukraine has moved to stop wheat exports reinforced that sentiment. Still, traders say the market's upside is tied closely to corn, and limited by abundant global wheat supplies. CBOT March wheat ends up 15 1/4c to $6.44 per bushel, while KCBT March wheat climbs 6 1/2c to $6.89 1/2. MGEX March wheat ends up 4 1/2c to $8.22 1/4, although deferred cOil rose to a nine-month high in New York after Iran said it halted some crude exports and investors bet that fuel demand will increase as Europe moves closer to bailing out Greece.
Wheat for May delivery gained 1.3 percent to $6.435 a bushel by 1:35 p.m. London time on the Chicago Board of Trade, taking gains for the most-active contract to 2.1 percent this week. Milling wheat for May delivery gained 1.2 percent to 208.50 euros ($274.76) a ton on NYSE Liffe in Paris.
Wheat rose after Egypt bought from U.S. inventories and corn gained on a Department of Agriculture report that showed overseas sales jumped last week. Soybeans also rose.
Egypt bought 180,000 metric tons of U.S. wheat at a tender yesterday, said Nomani Nomani, vice chairman of the General Authority for Supply Commodities. That added to the 55,000 tons bought from the U.S. on Feb. 11. U.S. corn sales in the week through Feb. 9 totaled 1 million tons, up 41 percent from the prior week, USDA data show.
Futures climbed as much as 2.1 percent for a fourth day of gains, the longest rising streak since December. Iran will supply crude to “new customers” instead of companies in the U.K. and France, the oil ministry’s news website, Shana, said, citing Alireza Nikzad Rahbar, a spokesman. Prices also advanced as European finance ministers prepared to meet to discuss a 130 billion-euro ($172 billion) aid package for Greece, the country’s second rescue in less than two years.
Wheat for May delivery gained 1.3 percent to $6.435 a bushel by 1:35 p.m. London time on the Chicago Board of Trade, taking gains for the most-active contract to 2.1 percent this week. Milling wheat for May delivery gained 1.2 percent to 208.50 euros ($274.76) a ton on NYSE Liffe in Paris.
Wheat rose after Egypt bought from U.S. inventories and corn gained on a Department of Agriculture report that showed overseas sales jumped last week. Soybeans also rose.
Egypt bought 180,000 metric tons of U.S. wheat at a tender yesterday, said Nomani Nomani, vice chairman of the General Authority for Supply Commodities. That added to the 55,000 tons bought from the U.S. on Feb. 11. U.S. corn sales in the week through Feb. 9 totaled 1 million tons, up 41 percent from the prior week, USDA data show.
Futures climbed as much as 2.1 percent for a fourth day of gains, the longest rising streak since December. Iran will supply crude to “new customers” instead of companies in the U.K. and France, the oil ministry’s news website, Shana, said, citing Alireza Nikzad Rahbar, a spokesman. Prices also advanced as European finance ministers prepared to meet to discuss a 130 billion-euro ($172 billion) aid package for Greece, the country’s second rescue in less than two years.
22.39
Wheat Prices 2012 Tumble, March Delivery Fell 36 cents
Written By mine on Senin, 16 Januari 2012 | 22.39
Wheat prices 2012 tumbled as a government report showed the nation’s farmers had planted winter wheat on much more of their land this season amid last year’s higher prices and easing drought conditions in Kansas, Oklahoma and Texas. Farmers and agricultural analysts had anticipated that more acres would be used for winter wheat given the welcome precipitation last fall and the acres left idle after other crops failed this summer. But Kansas State University economist Dan O’Brien said most analysts had not expected that the amount of acreage planted would increase so much.
Wheat prices in major western European markets were flat to slightly higher on Monday as export-boosting weakness in the euro offset pressure from pre-weekend falls in Chicago, and with a holiday closure in U.S. markets keeping activity light.
At the Chicago Board of Trade, wheat for March delivery fell 36 cents to $6.05 a bushel. The longer-term impact on prices will be determined when it is clear if all those extra acres turn into increased production and whether dry conditions return in the spring when the wheat comes out of dormancy.
Across the country, the amount of winter wheat planted for harvest in 2012 was estimated at 41.9 million acres, the National Agricultural Statistics Service reported Thursday. That is an increase of 3 percent from 2011 and up 12 percent from 2010.
Kansas farmer Jerry McReynolds, who has roughly 2,300 acres now planted in winter wheat, says that like many others, he added several hundred acres at his farm near Woodston because of the good prices and because some acres were idle after other crops failed this summer.
The rain Kansas got this fall also encouraged him to plant more winter wheat, which is hardier in the face of drought.
“All those factors came together to cause us to plant more wheat and we may pay the consequences,” McReynolds said. “We don’t know about that — certainly if today is an indication ... the markets are not too good today.”
McReynolds, who was attending the American Farm Bureau board meeting in Honolulu, had been anxiously awaiting the government report and checked commodity market prices on his hand-held device throughout the day. “I am worried about the price of wheat because when I get home I am gonna pay for this,” McReynolds said.
O’Brien said if farmers get adequate rain or snow, those added acres would mean more bushels come harvest that would increase supplies and could lower crop prices.
“There is a lot of uncertainty and weather trends in place that really raise the question of whether that will happen,” O’Brien said. “I don’t think we can say that is going to happen yet with a lot of certainty.”
The La Nina weather pattern is still hanging around and that tends to mean drier conditions this spring in wheat-growing areas, he said.
Texas Panhandle wheat farmer David Cleavinger, a past president of the National Association of Wheat Growers, is in a holding pattern on what he’ll do with the 1,200 acres of winter wheat he planted a bit late last fall because of the state’s historic drought. Though they have gotten timely rains and some snow the past few months, the wheat plants are “really, really small” in height, he said.
“There’s enough moisture for it right now, but there’s no submoisture whatsoever,” Cleavinger said. When the wheat comes out of dormancy, “it’s going to need more moisture. We keep hoping we get an 18-inch snow storm. It will be OK if we get more rain.”
As he waits, Cleavinger will be considering what to do with the wheat he ends up with: He can sell it as grain, sell it to cattle feedlots as silage made from wheat, cut it and sell it for hay at a time in Texas when there is little supply and prices are high — as much as $250 a ton — or let cattle graze in his fields.
“Odds of hay prices being pretty good should be an advantage for us to take it for hay rather than taking it to grain,” Cleavinger said. “It all is tied back to weather and rain. So if you don’t have moisture, you don’t have those options.”
Using his wheat for hay would be less risky, he said, because it wouldn’t still be in the fields when spring storms can bring damaging hail.
Hard red winter wheat, the type used for making bread, accounts for the vast majority of the nation’s winter wheat acreage. It rose 6 percent to 30.1 million planted acres.
Kansas, known as the nation’s breadbasket, planted 9.5 million acres, an 8 percent jump. Texas planted 5.9 million acres, up 11 percent from a year ago. Oklahoma seeded 5.5 million acres, an 8 percent increase.
Plantings of soft red winter wheat and white winter were both down nationwide.
“What it indicates is more hard red winter wheat planted,” O’Brien said. “I don’t know if we can say with a lot of confidence that will necessarily result in higher production until we work our way through this spring uncertainty.”
Europe
* The euro rose following a 17-month low against the dollar on Friday, when credit rating agency Standard & Poor's downgraded nine euro-zone countries, including France, but stayed below $1.27, partly due to stalled talks on Greece's debt.
* A softening euro helped European milling wheat in Paris stay in positive territory on Friday, even as Chicago crop futures fell sharply on a corresponding rise in the dollar plus improving crop weather in Argentina.
* March milling wheat closed up 1.25 euros or 0.63 percent at 198.25 euros a tonne. It continued to face resistance around 200 euros, with a key level seen at 203.50 euros, the peak of a rally at the turn of the year.
* "Our competitiveness has been reinforced, as shown by sales secured with Egypt and probably Algeria," French grains consultancy Agritel said in a note. "The impact of the price fall in Chicago is thus being limited by the euro factor and this could continue this week."
* French wheat scored its third straight tender sale to Egypt on Friday and was also seen as in contention to claim part of a major purchase by Algeria last week.
* The upturn in French exports has also been supported by a flagging pace of shipments from Russia after it dominated the early part of the season.
* In other export news, Tunisia issued an international tender to buy 125,000 tonnes of durum wheat.
* Weather worries in big exporting countries may provide broad support this week to grains, after they were dented last week by bigger-than-expected supply estimates from the U.S. government and by forecasts for improved crop weather in Argentina.
* A drought in Argentina will worsen this week as rain will not be enough to revive parched corn and soy crops, local meteorologists said.
* Colder weather in France since the end of last week was not seen as threatening crops as temperatures were not severe enough, with the cold rather seen as potentially beneficial for strengthening plants after mild conditions since the autumn.
* In oilseeds, rapeseed futures were little changed, with February closing down 0.50 euros or 0.11 percent at 450.00 euros a tonne.
* The weak euro and tight supply in Europe helped rapeseed hold up better last week than their lead market, U.S. soybeans, which were hit by bearish U.S. government estimates and the return of rain to drought-hit Argentina.
GERMANY
* Germany's market was little changed on late Friday levels, with support coming from a stable Paris market, export-boosting weakness in the euro and firm feed wheat demand.
* Standard bread-quality milling wheat for January delivery in Hamburg was offered for sale unchanged at 202 euros a tonne with buyers at around 200 euros.
* "The weaker euro will make the export outlook more positive at a time when competition from rivals like Argentina is flagging," one trader said. "But the lack of a lead from U.S. markets today means some people are restrained in trading."
* Short covering by animal feed makers was keeping German feed wheat prices at the same level or even higher than milling wheat, continuing a pattern seen last week.
* Feed wheat for delivery up to June in the South Oldenburg market near the Netherlands was offered for sale at 203 euros a tonne with buyers around 201 euros.
* "The new year holiday season in the Black Sea region has kept sales offers of feed wheat low, which seems to be keeping spot demand for feed wheat high," another trader said. (Reporting by Gus Trompiz and Valerie Parent in Paris and Michael Hogan in Hamburg; Editing by Anthony Barker)
U.S. farmers, the world’s biggest wheat exporters, probably planted the most winter grain in three years, expanding acreage from a century-low reached in 2009 just as a global supply glut swells to its biggest in a decade.
About 41.02 million acres, an area bigger than Illinois, were sown from September to November, 0.9 percent more than a year earlier, according to the average of 16 analyst estimates compiled by Bloomberg. That will add to world inventories set to rise 4 percent to 207.7 million metric tons, the most since 2000, the survey showed. Winter wheat makes up 74 percent of the U.S. crop, and the government gives its first estimate tomorrow.
Wheat traded in Chicago fell 30 percent from a 29-month high in February as a 47 percent surge in 2010 spurred more planting. That helped global food prices tracked by the United Nations drop 9.6 percent from a record, easing costs that drove global inflation higher. The second most widely held option gives owners the right to sell wheat at $6 a bushel by February, 6.4 percent lower than now, Chicago Board of Trade data show.
“We have ample supplies of wheat, and we just keep on producing more,” said Shawn McCambridge, the senior grain analyst at Jefferies Bache Commodities LLC in Chicago, who anticipates declining prices. “We’ll need normal-type weather conditions this spring, but in general, we’re going over the winter without really much of a dramatic concern.”
Trailing Equities
Wheat prices are down 1.8 percent this year, closing at $6.41 at 1:15 p.m. today in Chicago. Its 18 percent decline in 2011 was worse than the 1.2 percent retreat in the Standard & Poor’s GSCI Total Return Index of 24 commodities. The MSCI All- Country World Index of equities fell 9.4 percent and Treasuries returned 9.8 percent, a Bank of America Corp. index shows.
The S&P GSCI Agriculture Index of eight farm commodities tumbled 15 percent last year as slowing economies hurt demand for everything from cotton to soybeans. The gauge rose 44 percent in 2010 as drought decimated crops from Russia to Australia. At the end of 2009, the U.S. planted 37.33 million acres of winter wheat, the fewest sown since the fall of 1912, as excessive rains swamped fields from Ohio to Illinois.
Russian wheat farmers, once the world’s second-biggest producers, reaped 35 percent more last year than in 2010, recovering from the worst drought in more than 50 years, the U.S. Department of Agriculture estimates. Ukraine’s output jumped 31 percent, supply rose 9 percent in Canada and Australian production gained 1.5 percent to a record, according to the USDA. India, the largest grower after China, harvested its biggest crop ever.
Futures Trading
Hedge funds and other money managers have been betting on lower wheat prices since mid-September, having been mostly bullish since July 2010, data from the Commodity Futures Trading Commission show. They are holding a net-short position, or wagers on a decline, of 27,097 futures and options, compared with a net-long position of 51,787 contracts in February.
Growth in world demand this year may still exceed the 4 percent anticipated by the USDA, driving prices higher, as farmers substitute more for corn in livestock feed. Wheat is trading at a 12.25 cent-a-bushel discount to corn, compared with a premium of about $1.78 over the past five years, data compiled by Bloomberg show. Feed use for wheat will rise 16 percent this year, almost 12 times the rate of expansion in food use, the USDA estimates.
Corn rose 13 percent to $6.515 a bushel since Dec. 15 on mounting concern that dry weather is hurting crops in Brazil and Argentina, historically the largest exporters after the U.S. The lack of rain may spur more damage than the 2008-2009 drought that was the worst in 70 years, the Argentine Association of Regional Consortia for Agricultural Experimentation said Jan. 6.
‘Bearish’ Fundamentals
“Wheat is competitive as a feed grain with corn, so as corn goes, so goes wheat,” said Dan Manternach, a wheat economist with researcher Doane Advisory Services in St. Louis. “The fundamentals for wheat itself are bearish.”
Prospects for U.S. winter wheat have improved, with parts of Kansas, Oklahoma and Texas, the biggest producing states, getting three times the normal rainfall in the past 30 days, according to the National Weather Service. That is compensating for last year’s drought, the worst on record for Texas. Some areas of the Plains had half the normal rain in 2011.
Winter wheat is grown from the Midwest to the Great Plains, goes dormant until about March and is harvested from May.
Farmers “think we’re in far better shape than we were last year,” said Bill Spiegel, a spokesman for Kansas Wheat, a state growers group. “Last year, we didn’t have any moisture and the crop hadn’t really emerged. We’ve seen this year’s crop is up, and it went into dormancy in really good shape.”
Top Ratings
As of Jan. 1, 53 percent of the winter wheat in Kansas, the biggest growing state, was in good or excellent condition, compared with 47 percent a month earlier, the USDA said Jan. 3. In Oklahoma, 63 percent got the top ratings, up from 56 percent.
“We have good moisture in the top soil, but the subsoil is not as full as we’d like,” Paul Penner, a farmer in Hillsboro, Kansas, said in a telephone interview. “It looks great right now. But when it breaks dormancy in our area in late February and early March, that’s when it’s going to be critical that we get the rain we need as the temperatures rise.”
In Texas, about 25 percent of the crop was in good or excellent condition as of Jan. 8, unchanged from the end of November, the USDA said. Still, more fields were rated fair, and less were very poor, the worst rating.
Some farmers increased planting amid last year’s dry weather because government-subsidized crop-insurance rates set in September, based on futures prices, allowed them to lock in profits, Manhattan, Kansas-based Spiegel said.
“I’m bearish on wheat prices now on into harvest,” said Mark Welch, an agricultural economist at Texas A&M University in College Station, who expects prices in Chicago may drop as low as $5.75 by July. “Wheat is a resilient crop. If you give it a little rain to help it along, it’s surprising what it will do.”
Wheat prices in major western European markets were flat to slightly higher on Monday as export-boosting weakness in the euro offset pressure from pre-weekend falls in Chicago, and with a holiday closure in U.S. markets keeping activity light.
At the Chicago Board of Trade, wheat for March delivery fell 36 cents to $6.05 a bushel. The longer-term impact on prices will be determined when it is clear if all those extra acres turn into increased production and whether dry conditions return in the spring when the wheat comes out of dormancy.
Across the country, the amount of winter wheat planted for harvest in 2012 was estimated at 41.9 million acres, the National Agricultural Statistics Service reported Thursday. That is an increase of 3 percent from 2011 and up 12 percent from 2010.
Kansas farmer Jerry McReynolds, who has roughly 2,300 acres now planted in winter wheat, says that like many others, he added several hundred acres at his farm near Woodston because of the good prices and because some acres were idle after other crops failed this summer.
The rain Kansas got this fall also encouraged him to plant more winter wheat, which is hardier in the face of drought.
“All those factors came together to cause us to plant more wheat and we may pay the consequences,” McReynolds said. “We don’t know about that — certainly if today is an indication ... the markets are not too good today.”
McReynolds, who was attending the American Farm Bureau board meeting in Honolulu, had been anxiously awaiting the government report and checked commodity market prices on his hand-held device throughout the day. “I am worried about the price of wheat because when I get home I am gonna pay for this,” McReynolds said.
O’Brien said if farmers get adequate rain or snow, those added acres would mean more bushels come harvest that would increase supplies and could lower crop prices.
“There is a lot of uncertainty and weather trends in place that really raise the question of whether that will happen,” O’Brien said. “I don’t think we can say that is going to happen yet with a lot of certainty.”
The La Nina weather pattern is still hanging around and that tends to mean drier conditions this spring in wheat-growing areas, he said.
Texas Panhandle wheat farmer David Cleavinger, a past president of the National Association of Wheat Growers, is in a holding pattern on what he’ll do with the 1,200 acres of winter wheat he planted a bit late last fall because of the state’s historic drought. Though they have gotten timely rains and some snow the past few months, the wheat plants are “really, really small” in height, he said.
“There’s enough moisture for it right now, but there’s no submoisture whatsoever,” Cleavinger said. When the wheat comes out of dormancy, “it’s going to need more moisture. We keep hoping we get an 18-inch snow storm. It will be OK if we get more rain.”
As he waits, Cleavinger will be considering what to do with the wheat he ends up with: He can sell it as grain, sell it to cattle feedlots as silage made from wheat, cut it and sell it for hay at a time in Texas when there is little supply and prices are high — as much as $250 a ton — or let cattle graze in his fields.
“Odds of hay prices being pretty good should be an advantage for us to take it for hay rather than taking it to grain,” Cleavinger said. “It all is tied back to weather and rain. So if you don’t have moisture, you don’t have those options.”
Using his wheat for hay would be less risky, he said, because it wouldn’t still be in the fields when spring storms can bring damaging hail.
Hard red winter wheat, the type used for making bread, accounts for the vast majority of the nation’s winter wheat acreage. It rose 6 percent to 30.1 million planted acres.
Kansas, known as the nation’s breadbasket, planted 9.5 million acres, an 8 percent jump. Texas planted 5.9 million acres, up 11 percent from a year ago. Oklahoma seeded 5.5 million acres, an 8 percent increase.
Plantings of soft red winter wheat and white winter were both down nationwide.
“What it indicates is more hard red winter wheat planted,” O’Brien said. “I don’t know if we can say with a lot of confidence that will necessarily result in higher production until we work our way through this spring uncertainty.”
Europe
* The euro rose following a 17-month low against the dollar on Friday, when credit rating agency Standard & Poor's downgraded nine euro-zone countries, including France, but stayed below $1.27, partly due to stalled talks on Greece's debt.
* A softening euro helped European milling wheat in Paris stay in positive territory on Friday, even as Chicago crop futures fell sharply on a corresponding rise in the dollar plus improving crop weather in Argentina.
* March milling wheat closed up 1.25 euros or 0.63 percent at 198.25 euros a tonne. It continued to face resistance around 200 euros, with a key level seen at 203.50 euros, the peak of a rally at the turn of the year.
* "Our competitiveness has been reinforced, as shown by sales secured with Egypt and probably Algeria," French grains consultancy Agritel said in a note. "The impact of the price fall in Chicago is thus being limited by the euro factor and this could continue this week."
* French wheat scored its third straight tender sale to Egypt on Friday and was also seen as in contention to claim part of a major purchase by Algeria last week.
* The upturn in French exports has also been supported by a flagging pace of shipments from Russia after it dominated the early part of the season.
* In other export news, Tunisia issued an international tender to buy 125,000 tonnes of durum wheat.
* Weather worries in big exporting countries may provide broad support this week to grains, after they were dented last week by bigger-than-expected supply estimates from the U.S. government and by forecasts for improved crop weather in Argentina.
* A drought in Argentina will worsen this week as rain will not be enough to revive parched corn and soy crops, local meteorologists said.
* Colder weather in France since the end of last week was not seen as threatening crops as temperatures were not severe enough, with the cold rather seen as potentially beneficial for strengthening plants after mild conditions since the autumn.
* In oilseeds, rapeseed futures were little changed, with February closing down 0.50 euros or 0.11 percent at 450.00 euros a tonne.
* The weak euro and tight supply in Europe helped rapeseed hold up better last week than their lead market, U.S. soybeans, which were hit by bearish U.S. government estimates and the return of rain to drought-hit Argentina.
GERMANY
* Germany's market was little changed on late Friday levels, with support coming from a stable Paris market, export-boosting weakness in the euro and firm feed wheat demand.
* Standard bread-quality milling wheat for January delivery in Hamburg was offered for sale unchanged at 202 euros a tonne with buyers at around 200 euros.
* "The weaker euro will make the export outlook more positive at a time when competition from rivals like Argentina is flagging," one trader said. "But the lack of a lead from U.S. markets today means some people are restrained in trading."
* Short covering by animal feed makers was keeping German feed wheat prices at the same level or even higher than milling wheat, continuing a pattern seen last week.
* Feed wheat for delivery up to June in the South Oldenburg market near the Netherlands was offered for sale at 203 euros a tonne with buyers around 201 euros.
* "The new year holiday season in the Black Sea region has kept sales offers of feed wheat low, which seems to be keeping spot demand for feed wheat high," another trader said. (Reporting by Gus Trompiz and Valerie Parent in Paris and Michael Hogan in Hamburg; Editing by Anthony Barker)
U.S. farmers, the world’s biggest wheat exporters, probably planted the most winter grain in three years, expanding acreage from a century-low reached in 2009 just as a global supply glut swells to its biggest in a decade.
About 41.02 million acres, an area bigger than Illinois, were sown from September to November, 0.9 percent more than a year earlier, according to the average of 16 analyst estimates compiled by Bloomberg. That will add to world inventories set to rise 4 percent to 207.7 million metric tons, the most since 2000, the survey showed. Winter wheat makes up 74 percent of the U.S. crop, and the government gives its first estimate tomorrow.
Wheat traded in Chicago fell 30 percent from a 29-month high in February as a 47 percent surge in 2010 spurred more planting. That helped global food prices tracked by the United Nations drop 9.6 percent from a record, easing costs that drove global inflation higher. The second most widely held option gives owners the right to sell wheat at $6 a bushel by February, 6.4 percent lower than now, Chicago Board of Trade data show.
“We have ample supplies of wheat, and we just keep on producing more,” said Shawn McCambridge, the senior grain analyst at Jefferies Bache Commodities LLC in Chicago, who anticipates declining prices. “We’ll need normal-type weather conditions this spring, but in general, we’re going over the winter without really much of a dramatic concern.”
Trailing Equities
Wheat prices are down 1.8 percent this year, closing at $6.41 at 1:15 p.m. today in Chicago. Its 18 percent decline in 2011 was worse than the 1.2 percent retreat in the Standard & Poor’s GSCI Total Return Index of 24 commodities. The MSCI All- Country World Index of equities fell 9.4 percent and Treasuries returned 9.8 percent, a Bank of America Corp. index shows.
The S&P GSCI Agriculture Index of eight farm commodities tumbled 15 percent last year as slowing economies hurt demand for everything from cotton to soybeans. The gauge rose 44 percent in 2010 as drought decimated crops from Russia to Australia. At the end of 2009, the U.S. planted 37.33 million acres of winter wheat, the fewest sown since the fall of 1912, as excessive rains swamped fields from Ohio to Illinois.
Russian wheat farmers, once the world’s second-biggest producers, reaped 35 percent more last year than in 2010, recovering from the worst drought in more than 50 years, the U.S. Department of Agriculture estimates. Ukraine’s output jumped 31 percent, supply rose 9 percent in Canada and Australian production gained 1.5 percent to a record, according to the USDA. India, the largest grower after China, harvested its biggest crop ever.
Futures Trading
Hedge funds and other money managers have been betting on lower wheat prices since mid-September, having been mostly bullish since July 2010, data from the Commodity Futures Trading Commission show. They are holding a net-short position, or wagers on a decline, of 27,097 futures and options, compared with a net-long position of 51,787 contracts in February.
Growth in world demand this year may still exceed the 4 percent anticipated by the USDA, driving prices higher, as farmers substitute more for corn in livestock feed. Wheat is trading at a 12.25 cent-a-bushel discount to corn, compared with a premium of about $1.78 over the past five years, data compiled by Bloomberg show. Feed use for wheat will rise 16 percent this year, almost 12 times the rate of expansion in food use, the USDA estimates.
Corn rose 13 percent to $6.515 a bushel since Dec. 15 on mounting concern that dry weather is hurting crops in Brazil and Argentina, historically the largest exporters after the U.S. The lack of rain may spur more damage than the 2008-2009 drought that was the worst in 70 years, the Argentine Association of Regional Consortia for Agricultural Experimentation said Jan. 6.
‘Bearish’ Fundamentals
“Wheat is competitive as a feed grain with corn, so as corn goes, so goes wheat,” said Dan Manternach, a wheat economist with researcher Doane Advisory Services in St. Louis. “The fundamentals for wheat itself are bearish.”
Prospects for U.S. winter wheat have improved, with parts of Kansas, Oklahoma and Texas, the biggest producing states, getting three times the normal rainfall in the past 30 days, according to the National Weather Service. That is compensating for last year’s drought, the worst on record for Texas. Some areas of the Plains had half the normal rain in 2011.
Winter wheat is grown from the Midwest to the Great Plains, goes dormant until about March and is harvested from May.
Farmers “think we’re in far better shape than we were last year,” said Bill Spiegel, a spokesman for Kansas Wheat, a state growers group. “Last year, we didn’t have any moisture and the crop hadn’t really emerged. We’ve seen this year’s crop is up, and it went into dormancy in really good shape.”
Top Ratings
As of Jan. 1, 53 percent of the winter wheat in Kansas, the biggest growing state, was in good or excellent condition, compared with 47 percent a month earlier, the USDA said Jan. 3. In Oklahoma, 63 percent got the top ratings, up from 56 percent.
“We have good moisture in the top soil, but the subsoil is not as full as we’d like,” Paul Penner, a farmer in Hillsboro, Kansas, said in a telephone interview. “It looks great right now. But when it breaks dormancy in our area in late February and early March, that’s when it’s going to be critical that we get the rain we need as the temperatures rise.”
In Texas, about 25 percent of the crop was in good or excellent condition as of Jan. 8, unchanged from the end of November, the USDA said. Still, more fields were rated fair, and less were very poor, the worst rating.
Some farmers increased planting amid last year’s dry weather because government-subsidized crop-insurance rates set in September, based on futures prices, allowed them to lock in profits, Manhattan, Kansas-based Spiegel said.
“I’m bearish on wheat prices now on into harvest,” said Mark Welch, an agricultural economist at Texas A&M University in College Station, who expects prices in Chicago may drop as low as $5.75 by July. “Wheat is a resilient crop. If you give it a little rain to help it along, it’s surprising what it will do.”
19.36
Chicago Wheat Commodity Trading Fall 30 percent
Written By mine on Rabu, 11 Januari 2012 | 19.36
Wheat traded in Chicago fell 30 percent from a 29-month high in February as a 47 percent surge in 2010 spurred more planting. That helped global food prices tracked by the United Nations drop 9.6 percent from a record, easing costs that drove global inflation higher. The second most widely held option gives owners the right to sell wheat at $6 a bushel by February, 6.4 percent lower than now, Chicago Board of Trade data show.
U.S. farmers, the world’s biggest wheat exporters, probably planted the most winter grain in three years, expanding acreage from a century-low reached in 2009 just as a global supply glut swells to its biggest in a decade.
About 41.02 million acres, an area bigger than Illinois, were sown from September to November, 0.9 percent more than a year earlier, according to the average of 16 analyst estimates compiled by Bloomberg. That will add to world inventories set to rise 4 percent to 207.7 million metric tons, the most since 2000, the survey showed. Winter wheat makes up 74 percent of the U.S. crop, and the government gives its first estimate tomorrow.
“We have ample supplies of wheat, and we just keep on producing more,” said Shawn McCambridge, the senior grain analyst at Jefferies Bache Commodities LLC in Chicago, who anticipates declining prices. “We’ll need normal-type weather conditions this spring, but in general, we’re going over the winter without really much of a dramatic concern.”
Trailing Equities
Wheat prices are down 1.8 percent this year, closing at $6.41 at 1:15 p.m. today in Chicago. Its 18 percent decline in 2011 was worse than the 1.2 percent retreat in the Standard & Poor’s GSCI Total Return Index of 24 commodities. The MSCI All- Country World Index of equities fell 9.4 percent and Treasuries returned 9.8 percent, a Bank of America Corp. index shows.
The S&P GSCI Agriculture Index of eight farm commodities tumbled 15 percent last year as slowing economies hurt demand for everything from cotton to soybeans. The gauge rose 44 percent in 2010 as drought decimated crops from Russia to Australia. At the end of 2009, the U.S. planted 37.33 million acres of winter wheat, the fewest sown since the fall of 1912, as excessive rains swamped fields from Ohio to Illinois.
Russian wheat farmers, once the world’s second-biggest producers, reaped 35 percent more last year than in 2010, recovering from the worst drought in more than 50 years, the U.S. Department of Agriculture estimates. Ukraine’s output jumped 31 percent, supply rose 9 percent in Canada and Australian production gained 1.5 percent to a record, according to the USDA. India, the largest grower after China, harvested its biggest crop ever.
Futures Trading
Hedge funds and other money managers have been betting on lower wheat prices since mid-September, having been mostly bullish since July 2010, data from the Commodity Futures Trading Commission show. They are holding a net-short position, or wagers on a decline, of 27,097 futures and options, compared with a net-long position of 51,787 contracts in February.
Growth in world demand this year may still exceed the 4 percent anticipated by the USDA, driving prices higher, as farmers substitute more for corn in livestock feed. Wheat is trading at a 12.25 cent-a-bushel discount to corn, compared with a premium of about $1.78 over the past five years, data compiled by Bloomberg show. Feed use for wheat will rise 16 percent this year, almost 12 times the rate of expansion in food use, the USDA estimates.
Corn rose 13 percent to $6.515 a bushel since Dec. 15 on mounting concern that dry weather is hurting crops in Brazil and Argentina, historically the largest exporters after the U.S. The lack of rain may spur more damage than the 2008-2009 drought that was the worst in 70 years, the Argentine Association of Regional Consortia for Agricultural Experimentation said Jan. 6.
‘Bearish’ Fundamentals
“Wheat is competitive as a feed grain with corn, so as corn goes, so goes wheat,” said Dan Manternach, a wheat economist with researcher Doane Advisory Services in St. Louis. “The fundamentals for wheat itself are bearish.”
Prospects for U.S. winter wheat have improved, with parts of Kansas, Oklahoma and Texas, the biggest producing states, getting three times the normal rainfall in the past 30 days, according to the National Weather Service. That is compensating for last year’s drought, the worst on record for Texas. Some areas of the Plains had half the normal rain in 2011.
Winter wheat is grown from the Midwest to the Great Plains, goes dormant until about March and is harvested from May.
Farmers “think we’re in far better shape than we were last year,” said Bill Spiegel, a spokesman for Kansas Wheat, a state growers group. “Last year, we didn’t have any moisture and the crop hadn’t really emerged. We’ve seen this year’s crop is up, and it went into dormancy in really good shape.”
Top Ratings
As of Jan. 1, 53 percent of the winter wheat in Kansas, the biggest growing state, was in good or excellent condition, compared with 47 percent a month earlier, the USDA said Jan. 3. In Oklahoma, 63 percent got the top ratings, up from 56 percent.
“We have good moisture in the top soil, but the subsoil is not as full as we’d like,” Paul Penner, a farmer in Hillsboro, Kansas, said in a telephone interview. “It looks great right now. But when it breaks dormancy in our area in late February and early March, that’s when it’s going to be critical that we get the rain we need as the temperatures rise.”
In Texas, about 25 percent of the crop was in good or excellent condition as of Jan. 8, unchanged from the end of November, the USDA said. Still, more fields were rated fair, and less were very poor, the worst rating.
Some farmers increased planting amid last year’s dry weather because government-subsidized crop-insurance rates set in September, based on futures prices, allowed them to lock in profits, Manhattan, Kansas-based Spiegel said.
“I’m bearish on wheat prices now on into harvest,” said Mark Welch, an agricultural economist at Texas A&M University in College Station, who expects prices in Chicago may drop as low as $5.75 by July. “Wheat is a resilient crop. If you give it a little rain to help it along, it’s surprising what it will do.”
U.S. farmers, the world’s biggest wheat exporters, probably planted the most winter grain in three years, expanding acreage from a century-low reached in 2009 just as a global supply glut swells to its biggest in a decade.
About 41.02 million acres, an area bigger than Illinois, were sown from September to November, 0.9 percent more than a year earlier, according to the average of 16 analyst estimates compiled by Bloomberg. That will add to world inventories set to rise 4 percent to 207.7 million metric tons, the most since 2000, the survey showed. Winter wheat makes up 74 percent of the U.S. crop, and the government gives its first estimate tomorrow.
“We have ample supplies of wheat, and we just keep on producing more,” said Shawn McCambridge, the senior grain analyst at Jefferies Bache Commodities LLC in Chicago, who anticipates declining prices. “We’ll need normal-type weather conditions this spring, but in general, we’re going over the winter without really much of a dramatic concern.”
Trailing Equities
Wheat prices are down 1.8 percent this year, closing at $6.41 at 1:15 p.m. today in Chicago. Its 18 percent decline in 2011 was worse than the 1.2 percent retreat in the Standard & Poor’s GSCI Total Return Index of 24 commodities. The MSCI All- Country World Index of equities fell 9.4 percent and Treasuries returned 9.8 percent, a Bank of America Corp. index shows.
The S&P GSCI Agriculture Index of eight farm commodities tumbled 15 percent last year as slowing economies hurt demand for everything from cotton to soybeans. The gauge rose 44 percent in 2010 as drought decimated crops from Russia to Australia. At the end of 2009, the U.S. planted 37.33 million acres of winter wheat, the fewest sown since the fall of 1912, as excessive rains swamped fields from Ohio to Illinois.
Russian wheat farmers, once the world’s second-biggest producers, reaped 35 percent more last year than in 2010, recovering from the worst drought in more than 50 years, the U.S. Department of Agriculture estimates. Ukraine’s output jumped 31 percent, supply rose 9 percent in Canada and Australian production gained 1.5 percent to a record, according to the USDA. India, the largest grower after China, harvested its biggest crop ever.
Futures Trading
Hedge funds and other money managers have been betting on lower wheat prices since mid-September, having been mostly bullish since July 2010, data from the Commodity Futures Trading Commission show. They are holding a net-short position, or wagers on a decline, of 27,097 futures and options, compared with a net-long position of 51,787 contracts in February.
Growth in world demand this year may still exceed the 4 percent anticipated by the USDA, driving prices higher, as farmers substitute more for corn in livestock feed. Wheat is trading at a 12.25 cent-a-bushel discount to corn, compared with a premium of about $1.78 over the past five years, data compiled by Bloomberg show. Feed use for wheat will rise 16 percent this year, almost 12 times the rate of expansion in food use, the USDA estimates.
Corn rose 13 percent to $6.515 a bushel since Dec. 15 on mounting concern that dry weather is hurting crops in Brazil and Argentina, historically the largest exporters after the U.S. The lack of rain may spur more damage than the 2008-2009 drought that was the worst in 70 years, the Argentine Association of Regional Consortia for Agricultural Experimentation said Jan. 6.
‘Bearish’ Fundamentals
“Wheat is competitive as a feed grain with corn, so as corn goes, so goes wheat,” said Dan Manternach, a wheat economist with researcher Doane Advisory Services in St. Louis. “The fundamentals for wheat itself are bearish.”
Prospects for U.S. winter wheat have improved, with parts of Kansas, Oklahoma and Texas, the biggest producing states, getting three times the normal rainfall in the past 30 days, according to the National Weather Service. That is compensating for last year’s drought, the worst on record for Texas. Some areas of the Plains had half the normal rain in 2011.
Winter wheat is grown from the Midwest to the Great Plains, goes dormant until about March and is harvested from May.
Farmers “think we’re in far better shape than we were last year,” said Bill Spiegel, a spokesman for Kansas Wheat, a state growers group. “Last year, we didn’t have any moisture and the crop hadn’t really emerged. We’ve seen this year’s crop is up, and it went into dormancy in really good shape.”
Top Ratings
As of Jan. 1, 53 percent of the winter wheat in Kansas, the biggest growing state, was in good or excellent condition, compared with 47 percent a month earlier, the USDA said Jan. 3. In Oklahoma, 63 percent got the top ratings, up from 56 percent.
“We have good moisture in the top soil, but the subsoil is not as full as we’d like,” Paul Penner, a farmer in Hillsboro, Kansas, said in a telephone interview. “It looks great right now. But when it breaks dormancy in our area in late February and early March, that’s when it’s going to be critical that we get the rain we need as the temperatures rise.”
In Texas, about 25 percent of the crop was in good or excellent condition as of Jan. 8, unchanged from the end of November, the USDA said. Still, more fields were rated fair, and less were very poor, the worst rating.
Some farmers increased planting amid last year’s dry weather because government-subsidized crop-insurance rates set in September, based on futures prices, allowed them to lock in profits, Manhattan, Kansas-based Spiegel said.
“I’m bearish on wheat prices now on into harvest,” said Mark Welch, an agricultural economist at Texas A&M University in College Station, who expects prices in Chicago may drop as low as $5.75 by July. “Wheat is a resilient crop. If you give it a little rain to help it along, it’s surprising what it will do.”
08.21
Wheat Futures Prices in EU High than Chicago Wheat Market
Written By mine on Jumat, 18 November 2011 | 08.21
Wheat futures prices in Europe weakened on Thursday amid thin volume on signs prices were still too high to win export business and with lower prices in Chicago also weighing on the market, traders said.
* ?The market resists when one takes into account the lack of competitiveness of European wheat worldwide,? a trader said.
* ?On top of the strong competition from the Black Sea region, European wheat now needs to deal with increased competition from South America,? he added.
* By 1252 GMT, front-month January was 1.00 euro, or 0.54 percent lower at 185.50 euros ($250.98) a tonne, returning to levels seen on Tuesday, but still stuck in the 180-190 euro range in which it has moved for the past few months.
* Volume was unusually light with just 2,170 lots traded.
* France lost out in a tender on Wednesday by Algeria, normally its top client, for between 400,000 to 500,000 tonnes of wheat thought likely to have come from South America.
* Traders expected Saudi Arabia would chose Australian wheat in its upcoming tender to purchase 275,000 tonnes of wheat, as less good quality wheat is available in Russia and Kazakhstan is struggling with logistics.
* Chicago wheat and corn slid for a second straight session on Thursday, weighed down by signs of increasing global supply and broad-based losses on global commodities and stock markets amid concerns over the European Union?s debt crisis.
SPAIN
Spanish physical wheat was firmer due to lack of volume in a market depressed by the continuing economic crisis and with market players sitting on the sidelines in the hope of fresh arrivals of Ukrainian wheat in the New Year.
Traders said many sellers had reached deals for January to March delivery, by when Brussels is due to hold an auction for permits to import wheat under the tariff-rate quota (TRQ) scheme.
Prompt feed wheat in leading grains port Tarragona ? a benchmark in import-dependent Spain ? was quoted at 205-209 euros/tonne, up 2-3 euros from Monday.
?There is a lot of uncertainty. We don?t know where we?ll end up with so much discouragement due to lack of sales, the economic crisis, because millers as well as feed makers are losing money,? a dealer said.
?Small deals only are being settled, because buyers don?t want to step in at these prices. They prefer to wait.?
GERMANY
* In Germany, prices were weaker in line with the Paris market.
* Standard new crop bread-quality wheat for January delivery in Hamburg was quoted down one euro at around 193 euros.
* Hamburg selling prices remained above Paris on continued belief 2012 supplies will be tight following this summer?s disappointing German crop.
* ?There is little selling interest visible today in many regions with farmers and local traders not happy about the present low level of prices and holding out for better times,? one trader said.
* Low water levels on the river Rhine and Danube were disrupting deliveries of past contracts.
* ?Some Rhine freight rates have doubled because of the low water and cargo is being transferred to truck transport,? another trader said. ?Mills and feed makers are also trying to re-source material closer to their locations.?
* ?Some traders are also trying to negotiate delays of past contracts. The Rhine is so low that very substantial rain will be needed to raise water to normal levels and this is not in sight.?
* River catchment areas in Germany and Switzerland are forecast to be mainly dry up to Sunday.
* Prices at 1252 GMT
Product Last Change Pct Move End 2010 Ytd Pct
Paris wheat 185.50 -1.00 -0.54 252.50 -26.53
London wheat 150.50 -1.55 -1.02 199.00 -24.37
Paris maize 185.75 -0.75 -0.40 235.00 -20.96
Paris rape 430.50 -0.75 -0.17 497.25 -13.42
CBOT wheat 613.75 -3.00 -0.49 794.25 -22.73
CBOT corn 637.50 -5.25 -0.82 629.00 1.35
CBOT soybeans 1184.50 -3.25 -0.27 1393.75 -15.01
Crude oil 109.36 -2.52 -2.25 91.38 19.68
Euro/dlr 1.35 -0.02 -1.55 1.34 0.78
* Paris futures prices in Euros per tonne, London wheat in
pounds per tonne and CBOT in cents per bushel.
($1 = 0.739 Euros)
* ?The market resists when one takes into account the lack of competitiveness of European wheat worldwide,? a trader said.
* ?On top of the strong competition from the Black Sea region, European wheat now needs to deal with increased competition from South America,? he added.
* By 1252 GMT, front-month January was 1.00 euro, or 0.54 percent lower at 185.50 euros ($250.98) a tonne, returning to levels seen on Tuesday, but still stuck in the 180-190 euro range in which it has moved for the past few months.
* Volume was unusually light with just 2,170 lots traded.
* France lost out in a tender on Wednesday by Algeria, normally its top client, for between 400,000 to 500,000 tonnes of wheat thought likely to have come from South America.
* Traders expected Saudi Arabia would chose Australian wheat in its upcoming tender to purchase 275,000 tonnes of wheat, as less good quality wheat is available in Russia and Kazakhstan is struggling with logistics.
* Chicago wheat and corn slid for a second straight session on Thursday, weighed down by signs of increasing global supply and broad-based losses on global commodities and stock markets amid concerns over the European Union?s debt crisis.
SPAIN
Spanish physical wheat was firmer due to lack of volume in a market depressed by the continuing economic crisis and with market players sitting on the sidelines in the hope of fresh arrivals of Ukrainian wheat in the New Year.
Traders said many sellers had reached deals for January to March delivery, by when Brussels is due to hold an auction for permits to import wheat under the tariff-rate quota (TRQ) scheme.
Prompt feed wheat in leading grains port Tarragona ? a benchmark in import-dependent Spain ? was quoted at 205-209 euros/tonne, up 2-3 euros from Monday.
?There is a lot of uncertainty. We don?t know where we?ll end up with so much discouragement due to lack of sales, the economic crisis, because millers as well as feed makers are losing money,? a dealer said.
?Small deals only are being settled, because buyers don?t want to step in at these prices. They prefer to wait.?
GERMANY
* In Germany, prices were weaker in line with the Paris market.
* Standard new crop bread-quality wheat for January delivery in Hamburg was quoted down one euro at around 193 euros.
* Hamburg selling prices remained above Paris on continued belief 2012 supplies will be tight following this summer?s disappointing German crop.
* ?There is little selling interest visible today in many regions with farmers and local traders not happy about the present low level of prices and holding out for better times,? one trader said.
* Low water levels on the river Rhine and Danube were disrupting deliveries of past contracts.
* ?Some Rhine freight rates have doubled because of the low water and cargo is being transferred to truck transport,? another trader said. ?Mills and feed makers are also trying to re-source material closer to their locations.?
* ?Some traders are also trying to negotiate delays of past contracts. The Rhine is so low that very substantial rain will be needed to raise water to normal levels and this is not in sight.?
* River catchment areas in Germany and Switzerland are forecast to be mainly dry up to Sunday.
* Prices at 1252 GMT
Product Last Change Pct Move End 2010 Ytd Pct
Paris wheat 185.50 -1.00 -0.54 252.50 -26.53
London wheat 150.50 -1.55 -1.02 199.00 -24.37
Paris maize 185.75 -0.75 -0.40 235.00 -20.96
Paris rape 430.50 -0.75 -0.17 497.25 -13.42
CBOT wheat 613.75 -3.00 -0.49 794.25 -22.73
CBOT corn 637.50 -5.25 -0.82 629.00 1.35
CBOT soybeans 1184.50 -3.25 -0.27 1393.75 -15.01
Crude oil 109.36 -2.52 -2.25 91.38 19.68
Euro/dlr 1.35 -0.02 -1.55 1.34 0.78
* Paris futures prices in Euros per tonne, London wheat in
pounds per tonne and CBOT in cents per bushel.
($1 = 0.739 Euros)
08.03
Wheat Future Prices open 4-6 cents per Bushel
Written By mine on Jumat, 28 Oktober 2011 | 08.03
Wheat prices futures may open 4 cents to 6 cents a bushel lower on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange after a report yesterday showed U.S. export sales since June 1 are 18 percent smaller than at the same time last year, and as rains boost early crop growth in the southern Great Plains, Roose said.
Wheat fell in Chicago, paring a third weekly advance, on a prediction that global stockpiles will exceed a prior estimate as production climbs and demand wanes. Corn and soybeans dropped.
World wheat inventories will be 202 million metric tons at the end of the 2011-12 marketing year, up 4.7 percent from last month?s 193 million-ton forecast, the International Grains Council said yesterday. Output will total 684 million tons, above the 679 million tons forecast in September, as consumption retreats to 677 million tons, it said.
?This announcement is having a bearish influence on prices,? Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today. ?That certainly has offset some of the strength provided by macroeconomic events overnight.?
Wheat for December delivery declined 1 percent to $6.3725 a bushel by 10:53 a.m. London time on the Chicago Board of Trade. The grain is up 0.8 percent this week and yesterday climbed the most in more than two weeks after European leaders agreed on steps to curb the region?s debt crisis.
Milling wheat for January delivery traded on NYSE Liffe in Paris gained 0.1 percent to 183.75 euros ($260.61) a ton.
Wheat fell in Chicago, paring a third weekly advance, on a prediction that global stockpiles will exceed a prior estimate as production climbs and demand wanes. Corn and soybeans dropped.
World wheat inventories will be 202 million metric tons at the end of the 2011-12 marketing year, up 4.7 percent from last month?s 193 million-ton forecast, the International Grains Council said yesterday. Output will total 684 million tons, above the 679 million tons forecast in September, as consumption retreats to 677 million tons, it said.
?This announcement is having a bearish influence on prices,? Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today. ?That certainly has offset some of the strength provided by macroeconomic events overnight.?
Wheat for December delivery declined 1 percent to $6.3725 a bushel by 10:53 a.m. London time on the Chicago Board of Trade. The grain is up 0.8 percent this week and yesterday climbed the most in more than two weeks after European leaders agreed on steps to curb the region?s debt crisis.
Milling wheat for January delivery traded on NYSE Liffe in Paris gained 0.1 percent to 183.75 euros ($260.61) a ton.
06.27
Wheat Price December 2011 Fell, Corn Future Fall
Written By mine on Minggu, 09 Oktober 2011 | 06.27
Wheat for December delivery fell 8.50 cents to $6.0750 a bushel; December corn fell 5.50 cents to $6 a bushel; December oats fell 3.50 cents to $3.21 a bushel; while November soybeans fell 5.50 cents to $11.5825 a bushel.
Beef futures and pork futures were mixed on the Chicago Mercantile Exchange. Grains futures fell Friday on the Chicago Board of Trade. December live cattle fell 0.55 cent to $1.2185 a pound; November feeder cattle rose 0.78 cent to $1.4235 a pound; and December lean hogs rose 0.18 cent to 89.40 cents a pound.
Beef futures and pork futures were mixed on the Chicago Mercantile Exchange. Grains futures fell Friday on the Chicago Board of Trade. December live cattle fell 0.55 cent to $1.2185 a pound; November feeder cattle rose 0.78 cent to $1.4235 a pound; and December lean hogs rose 0.18 cent to 89.40 cents a pound.
20.59
Grain Future Prices Close Mix on CBOT
Written By mine on Kamis, 21 Juli 2011 | 20.59
Commodities Trading - Grain futures prices closed mixed on the Chicago Board of Trade Wednesday as concerns of a heat wave dictated market sentiment.
Corn was off 8 1/2 to off 10, soybeans were off 1 to up 2 1/2, wheat was up 3 1/2 to up 12 3/4 and oats were unchanged.
Corn prices opened higher, but buying faded as the sharp rally that began in previous sessions appears to have hit its peak. Wheat trading also balanced concerns over possible crop damage from a prolonged heat wave with concerns that the rally earlier in the week had run its course. Soybeans futures were off slightly as the weekend weather forecasts included some cooling down from mid-week highs.
The prices:
Corn: Sep 6.88 off 10, Dec 6.77 3/4 off 9 1/2, Mar 6.89 3/4 off 9 1/2, May 6.96 1/2 off 8 1/2.
Soybeans: Aug 13.78 1/4 off 1, Sep 13.79 up 2, Nov 13.84 up 2, Jan 13.93 1/4 up 2 1/2.
Wheat: Sep 6.97 up 3 1/2, Dec 7.35 1/4 up 8 1/2, Mar 7.68 3/4 up 11, May 7.87 1/2, up 12 3/4.
Oats: Sep 3.53 1/2, Dec 3.65, Mar 3.75, May 3.81 1/2 -- all unchanged.
Corn was off 8 1/2 to off 10, soybeans were off 1 to up 2 1/2, wheat was up 3 1/2 to up 12 3/4 and oats were unchanged.
Corn prices opened higher, but buying faded as the sharp rally that began in previous sessions appears to have hit its peak. Wheat trading also balanced concerns over possible crop damage from a prolonged heat wave with concerns that the rally earlier in the week had run its course. Soybeans futures were off slightly as the weekend weather forecasts included some cooling down from mid-week highs.
The prices:
Corn: Sep 6.88 off 10, Dec 6.77 3/4 off 9 1/2, Mar 6.89 3/4 off 9 1/2, May 6.96 1/2 off 8 1/2.
Soybeans: Aug 13.78 1/4 off 1, Sep 13.79 up 2, Nov 13.84 up 2, Jan 13.93 1/4 up 2 1/2.
Wheat: Sep 6.97 up 3 1/2, Dec 7.35 1/4 up 8 1/2, Mar 7.68 3/4 up 11, May 7.87 1/2, up 12 3/4.
Oats: Sep 3.53 1/2, Dec 3.65, Mar 3.75, May 3.81 1/2 -- all unchanged.
10.39
Future Wheat Prices Advance as Slow Exporter from US
Written By mine on Selasa, 05 Juli 2011 | 10.39
Future wheat prices advance as wet weather in the Great Plains will slow the harvest in the U.S., the world?s leading exporter, about 44 percent of the winter crop was harvested as of June 26, ahead of the five-year average of 37 percent, according to the U.S. Department of Agriculture. The agency will issue an update later today.
Wheat futures for September delivery rose 23.25 cents, or 3.8 percent, to settle at $6.355 a bushel at 1:15 p.m. on the Chicago Board of Trade. Last week, the price tumbled 7.4 percent, the fifth straight decline, amid signs of higher global production.
Parts of Kansas, the biggest U.S. winter-wheat growing state, may have thunderstorms with as much as 1.5 inches of rain (3.8 centimeters) for two days starting tomorrow, said Joel Widenor, the director of agricultural services at the Commodity Weather Group LLC in Bethesda, Maryland. Some areas in Nebraska may get as much as 4 inches of rain in the period, he said.
?You?re getting quite a storm system over northern Kansas and southern Nebraska,? said Louise Gartner, the owner of Spectrum Commodities in Beavercreek, Ohio. ?It?s going to delay the harvest.?
Wheat futures for September delivery rose 23.25 cents, or 3.8 percent, to settle at $6.355 a bushel at 1:15 p.m. on the Chicago Board of Trade. Last week, the price tumbled 7.4 percent, the fifth straight decline, amid signs of higher global production.
Parts of Kansas, the biggest U.S. winter-wheat growing state, may have thunderstorms with as much as 1.5 inches of rain (3.8 centimeters) for two days starting tomorrow, said Joel Widenor, the director of agricultural services at the Commodity Weather Group LLC in Bethesda, Maryland. Some areas in Nebraska may get as much as 4 inches of rain in the period, he said.
?You?re getting quite a storm system over northern Kansas and southern Nebraska,? said Louise Gartner, the owner of Spectrum Commodities in Beavercreek, Ohio. ?It?s going to delay the harvest.?
09.22
Wheat Prices Advanced due Low Stocking Levels in EU and Deteriorating US Crop Conditions
Written By mine on Kamis, 21 April 2011 | 09.22
Wheat prices look set to soar to record levels this year due to anticipated low stocking levels in the European Union, the world?s largest wheat producer.
Industry experts predict the price will remain high for the remainder of 2011. Milling wheat traded on the NYSE Liffe exchange in Paris, the European benchmark, averaged ?252.20 a ton in the first quarter, the second highest price since 1999. It fell by around 1% to ?238 yesterday, but looks sure to trade at ?220 to ?250 over the next year.
French agri-analysis firm Offre et Demande Agricole is advising its 5,000 French farm members to sell crops, according to Bloomberg. Prices may reach ?300 should crops fail in one of the bigger producers, it advises.
France?s crops office, FranceAgriMer, has increased its estimate for soft-wheat exports outside the EU in the 12 months to June to 12.75m tons from 12.6m tons.
Meanwhile, the US Department of Agriculture predicts global wheat stockpiles will drop 7.6% to 182.8m tons at the end of the 2010-11 trading year.
Rain last autumn slowed the planting of winter wheat, which accounts for 95% of the EU?s wheat crop, leaving acreage little changed from a year earlier.
While better yields will boost output by 5% to 141.4m metric tons, that may not be enough to rebuild the EU?s stockpiles, which its experts estimate will slump by 19% before the end of June.
The European farmer representative group Copa-Cogeca, of which the Irish Farmers Association is a member, said that this wheat shortfall serves to remind food producers of the importance of independence of food security for the EU?s 27 member states.
Meanwhile, Copa-Cogeca also noted that a newly published EU report on nitrogen emissions similarly highlighted the need to keep food security to the forefront in the continent?s future environmental strategy.
The EU report highlights the vital contribution of nitrogen to agricultural productivity and to maintaining EU food security. The farm group said that this issue is more important than ever given that world food demand is expected to more than double by 2050.
Copa-Cogeca secretary-general, Pekka Pesonen, said: "This study confirms that food security is crucial for Europe and that the only way to achieve this is to support an efficient, productive agriculture sector.
"The report also shows that the agriculture sector is much further ahead than other sectors in reducing its green house gas emissions, with a 20% fall in emissions seen in the EU agriculture sector over the period 1990 to 2007.
"Some 70% of nitrogen emissions, which have been identified as the most costly to society, come from transport and heating," he added.
"Furthermore, Copa-Cogeca EU farmers have reduced fertiliser consumption by 18% from 2002 to 2010. But in order for this to continue, European farmers need access to all technologies which improve their production efficiency. At the same time, EU farmers are being squeezed by high input prices and extreme market volatility.
"This will limit the amount of investment European farmers put into improving their business. The Common Agricultural Policy must provide a good economic framework for a modern, efficient agriculture to tackle also the nitrogen challenge."
Wheat rose for a third day in Chicago as worsening winter-crop conditions in the U.S., the largest exporter, and delayed spring-crop plantings fueled supply concerns amid strengthening demand.
About 38 percent of the winter-wheat crop was in poor or very poor condition as of April 17, up from 36 percent a week earlier and 6 percent a year earlier, the U.S. Department of Agriculture said yesterday. Dry weather in the past week from central Kansas to Texas hurt crops. About 5 percent of the spring-wheat crop was sown, against 18 percent a year earlier and the prior five-year average of 12 percent, the USDA said.
?Wheat prices rose sharply on the news of the slow spring- wheat planting and on the further news that the condition of the current winter-wheat crop is really quite bad,? economist Dennis Gartman said in his daily Gartman Letter.
Wheat for July delivery gained 12.75 cents, or 1.6 percent, to $8.235 a bushel by 10:54 a.m. London time on the Chicago Board of Trade. Prices reached a one-week high of $8.2475 after jumping 3.9 percent yesterday. Milling wheat for May delivery traded on NYSE Liffe in Paris climbed 6.25 euros, or 2.5 percent, to 252.25 euros ($360.01) a metric ton.
Wheat output in Texas, the fifth-largest U.S. grower, may plunge 61 percent to 50 million bushels as the dry spell damages plants and farmers abandon fields, said Mark Welch, a grain- marketing economist at Texas A&M University. About 68 percent of the Texas winter-wheat crop was in poor to very poor condition, the USDA said yesterday.
Yields in the U.S. may drop to 38 or 39 bushels an acre, the lowest since 2006, without improved weather conditions, said Dennis Delaughter, owner of Progressive Farm Marketing Inc. in Edna, Texas. The national yield has been below 40 bushels only twice in the past 13 years, USDA data show.
Wheat inspected for export at U.S. ports rose 24 percent from a week earlier to 35.7 million bushels in the week to April 14, the USDA said yesterday.
Corn for July delivery rose for a second day in Chicago, advancing 1.75 cents, or 0.2 percent, to $7.6125 a bushel. Sowing of the grain in the U.S., the largest grower and exporter, fell behind last year?s pace.
About 7 percent of the corn crop was planted as of April 17, down from 16 percent a year earlier, the USDA said yesterday. At least a third of the crop should be sown by May 1 or yield potential may be diminished, said Greg Grow, director of agribusiness for Archer Financial Services Inc. in Chicago.
Soybeans for July delivery fell 2.5 cents, or 0.2 percent, to $13.5325 a bushel after two advances in a row. China?s soybean crushers canceled more than 10 cargoes of the oilseed this month to cut growing losses for processing, state- affiliated researcher Grain.gov.cn said in a report today.
Crushers have also delayed shipments of more than 20 cargoes, it said. The cancellations and delays will likely lower China?s imports in the year through Sept. 30 to about 53 million tons, compared with 57 million tons estimated by the USDA, the researcher said. The Asian country is the world?s biggest soybean importer.
Industry experts predict the price will remain high for the remainder of 2011. Milling wheat traded on the NYSE Liffe exchange in Paris, the European benchmark, averaged ?252.20 a ton in the first quarter, the second highest price since 1999. It fell by around 1% to ?238 yesterday, but looks sure to trade at ?220 to ?250 over the next year.
French agri-analysis firm Offre et Demande Agricole is advising its 5,000 French farm members to sell crops, according to Bloomberg. Prices may reach ?300 should crops fail in one of the bigger producers, it advises.
France?s crops office, FranceAgriMer, has increased its estimate for soft-wheat exports outside the EU in the 12 months to June to 12.75m tons from 12.6m tons.
Meanwhile, the US Department of Agriculture predicts global wheat stockpiles will drop 7.6% to 182.8m tons at the end of the 2010-11 trading year.
Rain last autumn slowed the planting of winter wheat, which accounts for 95% of the EU?s wheat crop, leaving acreage little changed from a year earlier.
While better yields will boost output by 5% to 141.4m metric tons, that may not be enough to rebuild the EU?s stockpiles, which its experts estimate will slump by 19% before the end of June.
The European farmer representative group Copa-Cogeca, of which the Irish Farmers Association is a member, said that this wheat shortfall serves to remind food producers of the importance of independence of food security for the EU?s 27 member states.
Meanwhile, Copa-Cogeca also noted that a newly published EU report on nitrogen emissions similarly highlighted the need to keep food security to the forefront in the continent?s future environmental strategy.
The EU report highlights the vital contribution of nitrogen to agricultural productivity and to maintaining EU food security. The farm group said that this issue is more important than ever given that world food demand is expected to more than double by 2050.
Copa-Cogeca secretary-general, Pekka Pesonen, said: "This study confirms that food security is crucial for Europe and that the only way to achieve this is to support an efficient, productive agriculture sector.
"The report also shows that the agriculture sector is much further ahead than other sectors in reducing its green house gas emissions, with a 20% fall in emissions seen in the EU agriculture sector over the period 1990 to 2007.
"Some 70% of nitrogen emissions, which have been identified as the most costly to society, come from transport and heating," he added.
"Furthermore, Copa-Cogeca EU farmers have reduced fertiliser consumption by 18% from 2002 to 2010. But in order for this to continue, European farmers need access to all technologies which improve their production efficiency. At the same time, EU farmers are being squeezed by high input prices and extreme market volatility.
"This will limit the amount of investment European farmers put into improving their business. The Common Agricultural Policy must provide a good economic framework for a modern, efficient agriculture to tackle also the nitrogen challenge."
Wheat rose for a third day in Chicago as worsening winter-crop conditions in the U.S., the largest exporter, and delayed spring-crop plantings fueled supply concerns amid strengthening demand.
About 38 percent of the winter-wheat crop was in poor or very poor condition as of April 17, up from 36 percent a week earlier and 6 percent a year earlier, the U.S. Department of Agriculture said yesterday. Dry weather in the past week from central Kansas to Texas hurt crops. About 5 percent of the spring-wheat crop was sown, against 18 percent a year earlier and the prior five-year average of 12 percent, the USDA said.
?Wheat prices rose sharply on the news of the slow spring- wheat planting and on the further news that the condition of the current winter-wheat crop is really quite bad,? economist Dennis Gartman said in his daily Gartman Letter.
Wheat for July delivery gained 12.75 cents, or 1.6 percent, to $8.235 a bushel by 10:54 a.m. London time on the Chicago Board of Trade. Prices reached a one-week high of $8.2475 after jumping 3.9 percent yesterday. Milling wheat for May delivery traded on NYSE Liffe in Paris climbed 6.25 euros, or 2.5 percent, to 252.25 euros ($360.01) a metric ton.
Wheat output in Texas, the fifth-largest U.S. grower, may plunge 61 percent to 50 million bushels as the dry spell damages plants and farmers abandon fields, said Mark Welch, a grain- marketing economist at Texas A&M University. About 68 percent of the Texas winter-wheat crop was in poor to very poor condition, the USDA said yesterday.
Yields in the U.S. may drop to 38 or 39 bushels an acre, the lowest since 2006, without improved weather conditions, said Dennis Delaughter, owner of Progressive Farm Marketing Inc. in Edna, Texas. The national yield has been below 40 bushels only twice in the past 13 years, USDA data show.
Wheat inspected for export at U.S. ports rose 24 percent from a week earlier to 35.7 million bushels in the week to April 14, the USDA said yesterday.
Corn for July delivery rose for a second day in Chicago, advancing 1.75 cents, or 0.2 percent, to $7.6125 a bushel. Sowing of the grain in the U.S., the largest grower and exporter, fell behind last year?s pace.
About 7 percent of the corn crop was planted as of April 17, down from 16 percent a year earlier, the USDA said yesterday. At least a third of the crop should be sown by May 1 or yield potential may be diminished, said Greg Grow, director of agribusiness for Archer Financial Services Inc. in Chicago.
Soybeans for July delivery fell 2.5 cents, or 0.2 percent, to $13.5325 a bushel after two advances in a row. China?s soybean crushers canceled more than 10 cargoes of the oilseed this month to cut growing losses for processing, state- affiliated researcher Grain.gov.cn said in a report today.
Crushers have also delayed shipments of more than 20 cargoes, it said. The cancellations and delays will likely lower China?s imports in the year through Sept. 30 to about 53 million tons, compared with 57 million tons estimated by the USDA, the researcher said. The Asian country is the world?s biggest soybean importer.
04.11
Wheat Prices Surge as African and Mideast Unrest Make Speculators Gone
Written By mine on Kamis, 24 Februari 2011 | 04.11
Wheat commodity as grain, has prices surged as North African and Middle East nations bought more shipments to damp a surge in domestic prices that helped spark the protests from Morocco to Bahrain. Speculators including hedge funds last week cut their bets on higher wheat prices by 20 percent, U.S. Commodity Futures Trading Commission data show.
Wheat for May delivery fell 9 cents, or 1.1 percent, to $7.8925 a bushel on the Chicago Board of Trade, as of 9:26 a.m. in London. Corn for May delivery retreated 5.75 cents, or 0.8 percent, to $6.965 a bushel and soybeans dropped 16.75 cents, or 1.3 percent, to $13.1475 a bushel.
North Africa and Middle East countries are expected to buy 39.3 million metric tons of wheat in the 2010-11 marketing year, accounting for 32 percent of world purchases, U.S. Department of Agriculture data show.
Wheat extended a collapse and corn and soybeans also fell as traders speculated that a jump in energy costs caused by protests across North Africa and the Middle East will curb growth and demand for grains.
Riots already ousted leaders in Egypt, the world?s biggest wheat importer, and in Tunisia, and opposition groups have seized control of eastern cities in Libya. While wheat traded in Chicago dropped 10 percent since Feb. 18, crude oil traded in New York jumped 18 percent.
?Everyone has been bullish corn and wheat for an extended period,? Michael Pitts, commodity sales director at National Australia Bank Ltd., said by phone from Sydney today. The unrest in North Africa and the Middle East meant ?they really ignored some positive fundamentals and sold off.?
The Standard & Poor?s GSCI Agriculture Index of futures doubled since July and the United Nations says global food prices reached a record last month. The U.S., the biggest exporter, is forecasting a 49 percent jump in its shipments in the 12 months ending in June, the most in 18 years.
Hedge fund managers and other speculators held a net-long position, or bets on higher prices, of 34,193 contracts by Feb. 15. A week earlier, they held 42,635 contracts, the most since 1997, according to data from the CFTC.
?It?s not surprising to see the declines because of increasing risk aversion in the market,? said Eugen Weinberg, Frankfurt-based head of commodity research with Commerzbank AG. ?Gold is inching higher and oil is definitely experiencing some inflows.?
Wheat for May delivery fell 9 cents, or 1.1 percent, to $7.8925 a bushel on the Chicago Board of Trade, as of 9:26 a.m. in London. Corn for May delivery retreated 5.75 cents, or 0.8 percent, to $6.965 a bushel and soybeans dropped 16.75 cents, or 1.3 percent, to $13.1475 a bushel.
North Africa and Middle East countries are expected to buy 39.3 million metric tons of wheat in the 2010-11 marketing year, accounting for 32 percent of world purchases, U.S. Department of Agriculture data show.
Wheat extended a collapse and corn and soybeans also fell as traders speculated that a jump in energy costs caused by protests across North Africa and the Middle East will curb growth and demand for grains.
Riots already ousted leaders in Egypt, the world?s biggest wheat importer, and in Tunisia, and opposition groups have seized control of eastern cities in Libya. While wheat traded in Chicago dropped 10 percent since Feb. 18, crude oil traded in New York jumped 18 percent.
?Everyone has been bullish corn and wheat for an extended period,? Michael Pitts, commodity sales director at National Australia Bank Ltd., said by phone from Sydney today. The unrest in North Africa and the Middle East meant ?they really ignored some positive fundamentals and sold off.?
The Standard & Poor?s GSCI Agriculture Index of futures doubled since July and the United Nations says global food prices reached a record last month. The U.S., the biggest exporter, is forecasting a 49 percent jump in its shipments in the 12 months ending in June, the most in 18 years.
Hedge fund managers and other speculators held a net-long position, or bets on higher prices, of 34,193 contracts by Feb. 15. A week earlier, they held 42,635 contracts, the most since 1997, according to data from the CFTC.
?It?s not surprising to see the declines because of increasing risk aversion in the market,? said Eugen Weinberg, Frankfurt-based head of commodity research with Commerzbank AG. ?Gold is inching higher and oil is definitely experiencing some inflows.?
22.10
Future Wheat Prices Rise on Countries Boost Inventories
Written By mine on Jumat, 11 Februari 2011 | 22.10
Prices wheat futures rose to a 29-month high on signs that countries are boosting grain inventories after food inflation spurred unrest in North Africa. Wheat futures for March delivery rose 15.5 cents, or 1.8 percent, to $8.745 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $8.8075, the highest for a most-active contract since Aug. 25, 2008.
Egypt, the world?s biggest importer, bought 55,000 metric tons from the U.S. in a tender on Feb. 5. Iraq, Turkey, Bangladesh and Algeria have issued tenders since Feb. 6, and Iran and Saudi Arabia may be in the market ?soon,? the CME Group Inc. said in a report on its website.
?We had all these tenders that showed up over the weekend,? said Jeff McReynolds, the owner of McReynolds Marketing and Investments in Hays, Kansas. ?It still shows a lot of demand showing up in the world market, and it hit all at once.?
Prices surged 81 percent in the past year as drought slashed supplies in Russia and floods eroded crops from Canada to Australia. Tens of thousands of Egyptian protesters have rallied in the streets, chanting that the government is ?illegitimate? as surging food costs and high unemployment sparked unrest.
Wheat was the fourth most-valuable U.S. crop in 2009 at $10.6 billion, behind corn, soybeans and hay, government data show.
German wholesale prices have surged back to the peak they reached in July 2008, nearly three years ago before the worldwide financial crisis, statisticians said Friday.
In related news, German farmers say they have already sold about half the wheat they expect to harvest in August.
Millers are buying the wheat in advance to beat the rush as world commodity prices race ahead. The farmers reported the sales in a survey by an national agricultural research organization, DLG, based near Frankfurt.
DLG markets tracker Mechthilde Becker-Weigel said wheat futures were now back to the record level of 2008 on the back of high demand from North African nations and China and a slump in Russian exports.
The Federal Statistics Office said overall wholesale prices paid by merchants and industry in Germany had jumped 1.2 per cent, month on month, in January, and were now equal to the old, 2008, record.
Grain, seeds and fodder were the fastest-rising price group, up 71 per cent in the space of a year, the statisticians said.
Egypt, the world?s biggest importer, bought 55,000 metric tons from the U.S. in a tender on Feb. 5. Iraq, Turkey, Bangladesh and Algeria have issued tenders since Feb. 6, and Iran and Saudi Arabia may be in the market ?soon,? the CME Group Inc. said in a report on its website.
?We had all these tenders that showed up over the weekend,? said Jeff McReynolds, the owner of McReynolds Marketing and Investments in Hays, Kansas. ?It still shows a lot of demand showing up in the world market, and it hit all at once.?
Prices surged 81 percent in the past year as drought slashed supplies in Russia and floods eroded crops from Canada to Australia. Tens of thousands of Egyptian protesters have rallied in the streets, chanting that the government is ?illegitimate? as surging food costs and high unemployment sparked unrest.
Wheat was the fourth most-valuable U.S. crop in 2009 at $10.6 billion, behind corn, soybeans and hay, government data show.
German wholesale prices have surged back to the peak they reached in July 2008, nearly three years ago before the worldwide financial crisis, statisticians said Friday.
In related news, German farmers say they have already sold about half the wheat they expect to harvest in August.
Millers are buying the wheat in advance to beat the rush as world commodity prices race ahead. The farmers reported the sales in a survey by an national agricultural research organization, DLG, based near Frankfurt.
DLG markets tracker Mechthilde Becker-Weigel said wheat futures were now back to the record level of 2008 on the back of high demand from North African nations and China and a slump in Russian exports.
The Federal Statistics Office said overall wholesale prices paid by merchants and industry in Germany had jumped 1.2 per cent, month on month, in January, and were now equal to the old, 2008, record.
Grain, seeds and fodder were the fastest-rising price group, up 71 per cent in the space of a year, the statisticians said.
22.17
Agriculture Market Outlook 2011: Wheat Future Prices Fall
Written By mine on Minggu, 02 Januari 2011 | 22.17
Wheat futures fell the most in six weeks on speculation that snow in the U.S. Great Plains will improve soil moisture and provide protective cover over crops before temperatures drop.
Areas of northwest Kansas may receive up to 6 inches (15 centimeters) of snow by tomorrow, while southwest to north- central Nebraska may get up to 8 inches, according to National Weather Service forecasts. Much of the area has had less than half of the normal amount of precipitation in the past 60 days. Temperatures may drop to minus 10 Fahrenheit (minus 23 Celsius), according to World Weather Inc.
The storm ?probably will provide some snow cover before the cold weather comes across,? said Louise Gartner, the owner of Spectrum Commodities in Beavercreek, Ohio.
Wheat futures for March delivery fell 19 cents, or 2.4 percent, to $7.8025 a bushel at 10:30 a.m. on the Chicago Board of Trade. A close at that price would be the biggest decline since Nov. 16.
Before today, prices jumped 48 percent this year as adverse weather cut production in Russia and threatened crops in Australia and the U.S.
Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show.
With prices high and exports strong, the outlook for Montana's wheat harvest is golden.
Lola Raska of the Montana Grain Growers Association says people in the industry were in a good mood as the state's largest grain group wrapped up its convention in Great Falls last week.
Cash prices for wheat have ranged from $6.49 a bushel for ordinary winter wheat to $10.15 for high-protein spring wheat. Six months ago, the average price was less than $5 a bushel.
Russia and Ukraine has suspended grain exports because of drought and Australia finished the year reporting a 1 million ton cut in wheat exports.
Montana wheat farms have produced 215.36 million bushels of wheat this year, despite planting 80,000 fewer acres than the year before, according to the National Agricultural Statistics Service.
Chicago wheat futures rallied from a 2-week low as Russia extend bans on grain exports while corn and soybeans continue their falling trend amid stronger U.S. dollar and favorable weather.
The most active wheat contract for December delivery gained two cents, or 1.2 percent, to 6.7075 U.S. dollars per bushel. December corn slid 4.15 cents, or 0.8 percent, to 5.6 dollars per bushel. November soybean shed two cents, or 0.17 percent, to 11.995 dollars per bushel.
Russia, one of the worlds'largest wheat exporters, extended its export ban on grain to July 1, 2011, Prime Minister Vladimir Putin said on Friday, which has triggered robust rally in the wheat market.
The country said in August it would halt exports until the end of this year due to reduced grain production amid severe drought, which pushed the wheat market on the hiking track. The wheat price has surged around 40 dollars since the end of July.
Areas of northwest Kansas may receive up to 6 inches (15 centimeters) of snow by tomorrow, while southwest to north- central Nebraska may get up to 8 inches, according to National Weather Service forecasts. Much of the area has had less than half of the normal amount of precipitation in the past 60 days. Temperatures may drop to minus 10 Fahrenheit (minus 23 Celsius), according to World Weather Inc.
The storm ?probably will provide some snow cover before the cold weather comes across,? said Louise Gartner, the owner of Spectrum Commodities in Beavercreek, Ohio.
Wheat futures for March delivery fell 19 cents, or 2.4 percent, to $7.8025 a bushel at 10:30 a.m. on the Chicago Board of Trade. A close at that price would be the biggest decline since Nov. 16.
Before today, prices jumped 48 percent this year as adverse weather cut production in Russia and threatened crops in Australia and the U.S.
Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show.
With prices high and exports strong, the outlook for Montana's wheat harvest is golden.
Lola Raska of the Montana Grain Growers Association says people in the industry were in a good mood as the state's largest grain group wrapped up its convention in Great Falls last week.
Cash prices for wheat have ranged from $6.49 a bushel for ordinary winter wheat to $10.15 for high-protein spring wheat. Six months ago, the average price was less than $5 a bushel.
Russia and Ukraine has suspended grain exports because of drought and Australia finished the year reporting a 1 million ton cut in wheat exports.
Montana wheat farms have produced 215.36 million bushels of wheat this year, despite planting 80,000 fewer acres than the year before, according to the National Agricultural Statistics Service.
Chicago wheat futures rallied from a 2-week low as Russia extend bans on grain exports while corn and soybeans continue their falling trend amid stronger U.S. dollar and favorable weather.
The most active wheat contract for December delivery gained two cents, or 1.2 percent, to 6.7075 U.S. dollars per bushel. December corn slid 4.15 cents, or 0.8 percent, to 5.6 dollars per bushel. November soybean shed two cents, or 0.17 percent, to 11.995 dollars per bushel.
Russia, one of the worlds'largest wheat exporters, extended its export ban on grain to July 1, 2011, Prime Minister Vladimir Putin said on Friday, which has triggered robust rally in the wheat market.
The country said in August it would halt exports until the end of this year due to reduced grain production amid severe drought, which pushed the wheat market on the hiking track. The wheat price has surged around 40 dollars since the end of July.