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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April 17th, 2014

Wheat futures rebounded in Chicago on speculation that turmoil in Ukraine and drought in the U.S. will disrupt supplies.

Top diplomats from Ukraine and Russia will meet today for the first time since clashes erupted in Ukraine’s restive east, accompanied by U.S. and European Union counterparts poised to impose new sanctions if talks fail. Ukraine is the sixth-largest shipper of wheat.

“There’s been some underlying bullish factors with Ukraine and Russia and that has escalated so that’s got interest back on that area,” Nathan Cattle, senior commodity analyst at Profarmer Australia, a unit of NZX Ltd., said by phone from Melbourne. “The other one is U.S. winter wheat conditions. Everyone’s looking at the forecast.”

Wheat futures for July delivery climbed 0.5 percent to $6.99 a bushel by 6:49 a.m. on the Chicago Board of Trade, after falling 2 percent yesterday. Milling wheat futures in Paris dropped 0.7 percent.

While rains in the southwest Plains on April 19 and the east-central Plains on April 20 will improve moisture for wheat, significant reductions in drought and crop stress are not anticipated, MDA Information Systems LLC said in a report yesterday.

Soybeans in Chicago extended gains to a 10-month high, rising as much 0.8 percent to $15.21 a bushel and corn climbed 0.2 percent to $5.045 a bushel.

- Phoebe Sedgman in Melbourne at Bloomberg.

March 3rd, 2014

Wheat futures climbed the most since 2012 and corn rallied to the highest price since September as tensions escalated in Ukraine, a leading exporter of both grains.

Ukraine, set to be the third-largest corn shipper this year, mobilized its army reserves after Russia seized control of the eastern European country’s Black Sea region of Crimea, sparking one of the most serious standoffs between the West since the end of the Cold War. Ukraine probably will boost wheat exports this season to 9.5 million metric tons from 7.1 million a year earlier, making it the sixth-biggest supplier, according to the International Grains Council.

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April 2nd, 2013

Wheat advanced for a second day, extending a rebound from the lowest level in nine months, on concern that freezing conditions in the U.S. probably hurt the winter crop, while wet weather may delay planting of the spring crop. Corn fell for a fourth day, deepening a bear market.

Wheat futures for delivery in May gained as much as 0.9 percent to $6.765 a bushel on the Chicago Board of Trade, after dropping to $6.5975 on April 1. It traded at $6.72, up 0.2 percent at 9:26 a.m. in Singapore on volume that was about 59 percent above the 100-day average for that time of day.

Freezing conditions early last week may have damaged so- called jointing wheat in the southern plains, while in the Delta region, heavy rain this week may delay spring field work, Bryce Anderson, an agricultural meteorologist at DTN, said in a report yesterday. Jointing refers to a stage when nodes develop on a plant’s stem, according to a Queensland government website.

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