Future Wheat Prices Advance as Slow Exporter from US

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.?

Corn, Wheat, Soybean and Oats Future Prices Mixed of Trade First March 2011

Grains include corn , wheat, soybean and oats closed mixed on the Chicago Board of Trade Tuesday with the dollar index rising 0.17 percent.

Corn was up 4 1/4 to up 5, soybeans were up 9 1/2 to up 11, wheat was off 6 3/4 to off 9 and oats were up 5 to up 8 3/4. Corn rose modestly higher, partly in tandem with oil prices, which soared in New York on continued tensions in the Middle East.

Wheat prices fell on improved crop conditions in China. Soybean prices rose as rain in Brazil is reportedly impeding harvest progress.

Corn price: Mar 7.27 1/4 up 4 3/4, May 7.35 1/2 up 4 1/2, Jly 7.38 1/4 up 5, Sep 6.54 3/4 up 4 1/2.

Soybeans price: Mar 13.67 1/2 up 10 1/4, May 13.75 1/4 up 10 1/2, Jly 13.82 up 9 1/2, Aug 13.70 up 11.

Wheat price: Mar 7.75 3/4 off 6 3/4, May 8.10 1/4 off 6 3/4, Jly 8.40 3/4 off 7 1/2, Sep 8.70 1/4 off 9.

Oats price: Mar 3.80 up 8 3/4, May 3.89 1/2 up 8 1/2, Jly 3.97 up 8 1/2, Sep 3.91 up 5.

Global grain prices have fallen by almost 15% over the past seven days, highlighting, once again the tremendous volatility of the international markets which local farmers and food processors now have to cope with.

Grains and oilseed prices are likely to find support from consumers who have shown an increase in buying activity amidst this pullback in prices. We expect volatility will continue to increase in coming months as prices consolidate near current levels before continuing their rise into the Northern hemisphere?s spring planting season.

Global consumers have taken advantage of the lower prices with Saudi Arabia, Egypt and Tunisia tendering for wheat over the last few days but the local agricultural consumer has taken fright and gone into hiding, frightened to buy in case this is a sign of the bullish market turning with the dramatic effect seen in 2008.

Grains futures traded mixed on the Chicago Board of Trade.

Wheat for May delivery fell 6.75 cents to $8.1025 a bushel

May corn added 4.50 cents to $7.3550 a bushel

May oats were up 8.50 cents to $3.8950 a bushel

while soybeans for May delivery gained 10.50 cents to $13.7525 a bushel.

Beef and pork traded lower or flat on the Chicago Mercantile Exchange.

April live cattle fell 1.50 cent to $1.1140 a pound

March feeder cattle dropped 1.17 cent to $1.2890 a pound

April lean hogs fell 70 cent to 88.10 cents a pound

while March pork bellies were unchanged at $1.1650 a pound.

Wheat Consumption Growth in China Corn Commodity Stay

China consumption of wheat growing while corn stay self-sufficient in corn and the autumn harvest will probably increase, so corn commodities imports may grow, the increase will not be significant, China will keep policies to support wheat and corn farmers and maintain controls on the domestic grain market.

Corn futures advanced 18 percent in Dalian in the past year and wheat prices increased 25 percent in Zhengzhou. China imported the most corn in 14 years and sold 13.7 million metric tons from stockpiles in the north of the country. The government may not replace all the corn sold from inventories, Zeng said today. Heavy rain and low temperatures have hurt corn, wheat and rice crops, contributing to gains in local prices.

China government is determined to curb excessive speculation and hoarding. While corn consumption will increase, supply and demand is balanced and price gains aren?t justified, she said. Corn for May delivery advanced 0.4 percent to 2,046 yuan ($304) per ton on the Dalian Commodity Exchange today. The most active contract climbed to 2,070 yuan per ton on Sept. 8.