July 2nd, 2012

Wheat Futures – U.S. farmers, the biggest wheat shippers, are poised to lose their advantage over French growers in export markets after the worst Midwest drought in more than a decade wilted grain crops and drove prices to a 10-month high.

Wheat traded in Chicago jumped 18 percent in the past two weeks as Paris grain rose 12 percent. French supply for delivery after the harvest traded at a premium of $5.38 a metric ton to the U.S. in Paris yesterday, from a record $25.27 on May 2. That may flip to a $5 discount in the next several weeks, said Alexandre Marie, a Bourges, France-based analyst at Offre & Demande Agricole, which advises 5,000 farmers on crop sales.

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