wheat futures

wheat futures

August 13th, 2014

Wheat futures rose after the U.S. lifted the outlook for its exports of the grain as well as for global consumption, blunting the effect of increased production.

The U.S. is expected to ship 25.5 million metric tons of wheat in 2014-15, the U.S. Department of Agriculture said yesterday, lifting its outlook by 500,000 tons. The estimate for domestic ending stocks was little changed even as the agency raised its harvest forecast.

“In wheat, the situation remains largely unchanged in the U.S.,” Paris-based farm adviser Agritel wrote in an e-mailed comment. “Despite an increase in production, the export market improves with an outlook above 25.1 million tons, thus keeping ending stocks close to last month’s estimates.”

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wheat futures

wheat futures

August 4th, 2014

Wheat futures rose to a two-week high in Chicago on speculation that demand will increase for U.S. grain after wet weather eroded the quality of some crops in Europe.

France, the European Union’s biggest wheat grower, received twice the normal amount of rain on average in July, according to weather office Meteo-France. Wet weather late in the growing season probably cut quality of grain in both France and Germany, the second-biggest producer, Rabobank International said Aug. 1. The U.S. and EU each accounted for almost 20 percent of world exports last season, U.S. Department of Agriculture data show.

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wheat futures

wheat futures

August 1st, 2014

Wheat extended a decline to a four-year low in Paris on prospects for rising harvests in Europe and the Black Sea region even as excess rainfall raised concern in some areas about crop quality. Wheat rose in Chicago on signs of increasing demand for U.S. exports.

The soft wheat harvest in the European Union may be about 143 million metric tons, 5.1 percent more than the previous year, ADM Germany GmbH said yesterday. The harvest in France, the top EU grower, accelerated last week, with 76 percent of soft wheat crops collected in the main growing areas as of July 28, even as conditions deteriorated from the prior week, FranceAgriMer said today.

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wheat futures

wheat futures

July 22nd, 2014

Wheat rebounded amid speculation that yesterday’s slide to a four-year low may prompt some investors to close bets on a price drop and as rain forecast for parts of Europe raises concerns about crop quality.

Wheat futures in Chicago entered a bear market in June, and the most-active contract has dropped 28 percent from a peak of $7.44 a bushel on May 6. The 14-day relative strength index for wheat, a gauge of price momentum, was at 33.6, near the level of 30 below which some analysts consider indicates a security to be oversold.

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wheat futures

wheat futures

June 13th, 2014

Wheat futures rose, trimming a fifth weekly loss, amid speculation that a slump into a bear market may spur demand as Egypt bought grain from Romania and Russia yesterday.

Wheat entered a bear market on June 11 after the U.S. Department of Agriculture raised its forecast for global inventories. Egypt’s state grain authority bought 180,000 metric tons of wheat yesterday in its first international wheat tender for shipping in 2014-15.

Wheat for July delivery rose 0.6 percent to $5.89 a bushel on the Chicago Board of Trade at 6:04 a.m. local time, after touching $5.84 yesterday, the lowest for a most-active contract since Feb. 12. Chicago wheat futures are set to drop 4.7 percent this week. Milling wheat for November delivery traded on Euronext in Paris rose 0.1 percent to 188 euros ($255) a ton.

“You’ve always got to find some area of support after such a big move,” said Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney. “You’ve got a market that is short and getting shorter.”

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wheat futures brokers

wheat futures brokers

June 11, 2014

Wheat rebounded on speculation that demand will be rekindled after prices slumped to the lowest level in more than three months before a government report that may show global reserves rising to the highest in three years.

Futures for July delivery rose 0.6 percent to $6.05 a bushel on the Chicago Board of Trade by 3:56 a.m. local time after retreating to $5.9825, the lowest for a most-active contract since Feb. 28. Prices slumped 19 percent by yesterday from the 14-month closing high of $7.39 on May 6. A 20 percent drop meets the common definition of a bear market.

World stockpiles before the 2015 Northern Hemisphere harvest may be bigger than the U.S. Department of Agriculture forecast last month according to a Bloomberg survey. The USDA updates its estimate today. Australia today lowered its crop forecast to 24.6 million metric tons from 24.8 million tons on dry weather.

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wheat futures brokers

wheat futures

June 4th, 2014

Wheat rallied from the lowest level in more than three months as investors weighed improved planting in the U.S., the world’s biggest exporter, against speculation that the longest slump in 15 years may spur demand.

Futures for July delivery advanced 0.2 percent to $6.14 a bushel on the Chicago Board of Trade by 1:57 p.m. in Singapore after a 0.3 percent drop to $6.1075, the lowest level for a most active-contract since Feb. 28. Prices fell for a 10th session yesterday, the longest such slump since Sept. 1, 1998.

About 30 percent of U.S. winter wheat was in good or excellent condition as of June 1, unchanged from a week earlier, the U.S. Department of Agriculture said June 2. Planting of spring wheat was 88 percent complete from 74 percent in the previous week, it said. Showers later this week in central and northern areas of the Plains wheat belt will replenish moisture, MDA Information Systems LLC said in a report yesterday.

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wheat futures

wheat futures prices

May 30th, 2014

Wheat futures fell for an eighth session in Chicago, headed for the biggest monthly drop since 2011, on speculation that crop conditions in the U.S. will improve amid prospects for rain. Corn was little changed.

Thirty percent of the U.S. winter wheat crop was in good or excellent condition as of May 25, improving from 29 percent the prior week, the U.S. Department of Agriculture said in a weekly report. Areas of Texas, Oklahoma and central Kansas, where crops have suffered from drought, saw an inch (2.5 centimeters) of rain or more in the past week, National Weather Service data show. Rain next week may benefit crop development in the central Great Plains, Commodity Weather Group said in a report today.

“The U.S. markets continue to drift as an improving weather outlook keep fund longs in sell mode,” David Sheppard, a managing director at Gainsborough, England-based Gleadell Agriculture Ltd., said in an e-mailed note today. “Winter wheat crop ratings improved slightly on the week and the favorable weather saw U.S. farmers push on with spring plantings.”

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wheat options

wheat futures

May 14th, 2014

Wheat futures fell, extending the longest slump in almost five months, as speculation mounted that global supplies will be sufficient. Corn declined amid forecasts for beneficial crop weather in the U.S.

World wheat stockpiles will rise 0.5 percent to 187.4 million metric tons by June 1, 2015, the U.S. Department of Agriculture said May 9. Yesterday, the premium that exporters paid for soft, red winter wheat at terminals near New Orleans dropped to the lowest in almost eight months, USDA data show.

“The market is realizing we are not going to be running out of grain any time soon, and adjusting lower,” Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a telephone interview. “U.S. wheat is overpriced. The U.S. is returning to its role as a supplier of last resort.”

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wheat options

wheat futures

April 24th, 2014

Wheat futures climbed for a fourth day on speculation that escalating tension between Russia and Ukraine may disrupt supplies from the Black Sea region and boost demand for the U.S. grain.

The contract for July delivery rose as much as 0.7 percent to $7.01 a bushel on the Chicago Board of Trade, and was at $6.9825 by 10:23 a.m. in Singapore. Futures jumped 2 percent yesterday for the biggest increase since April 15. A fourth day of gains would be the longest such streak since Feb. 19.

U.S. Secretary of State John Kerry accused Russia of not keeping its word on an accord forged in Geneva last week after Ukraine’s killing of five rebels spurred Russia’s military to begin new drills on the nations’ shared border. The U.S. is the top wheat shipper, while Russia ranks fifth followed by Ukraine.

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