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May 21st, 2012
Wheat futures fell for the first time in six sessions in Chicago after climbing to the highest price in more than eight months in earlier trading, as rain in Ukraine and Russia may relieve drought concerns.
July-delivery wheat fell as much as 1.8 percent to $6.8275 a bushel on the Chicago Board of Trade and was at $6.8725 at 12:40 p.m. Paris time. The contract earlier rose as high as $7.22 a bushel, the highest level for the most active contract since Sept. 13.
Wheat futures jumped 16 percent last week, the most since the five days ended June 15, 2007, as dry weather threatened to damage crops in the U.S. and Russia, two of the world’s three biggest shippers this year. Russia and Ukraine will get showers today and tomorrow, AccuWeather forecast.
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April 24th, 2012
Wheat futures gained for the second straight day on speculation that demand will rise as more of the grain will be added to livestock feed as corn costs climb.
The price of corn, the main ingredient in U.S. animal feed, rose as much as 1.5 percent today in Chicago after the government announced overseas sales of 480,000 metric tons to unknown buyers. With less corn available in the U.S. and prices rising, some cattle producers in the southern Great Plains will add wheat to livestock rations, said David Lambert, head of the agriculture economics department at Kansas State University in Manhattan.
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April 11th, 2012
Wheat futures rose on speculation that cold weather in U.S. growing areas may slow development of plants that have begun to emerge from the ground.
Plant germination for some spring wheat sown early in the northern Great Plains may be delayed by temperatures that have dropped below freezing, Telvent DTN Meteorologist Joel Burgio said in a report today. Frigid weather in Illinois and Indiana, where wheat is emerging after lying dormant during the winter, may hurt crops, Chicago-based QT Weather said.
“It probably got cold enough that there’s going to be some talk about damage in the Dakotas,” Mike Zuzolo, the president of Global Commodity Analytics in Lafayette, Indiana, said in a telephone interview. The temperature fell to 21 degrees Fahrenheit (minus 6 degrees Celsius) yesterday in Montana, and “that’s where the heart and soul of these bullish fundamentals lie,” he said.
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wheat futures supply
March 9th, 2012
Wheat Futures – Global wheat inventories will be 1.7 percent less than forecast a month ago and smaller than expected on increasing use of the grain in livestock feed, the U.S. Department of Agriculture said.
World stockpiles will total a record 209.58 million metric tons as of May 31, down from 213.10 million estimated last month, the USDA said today in a report. In a Bloomberg survey, 21 analysts expected supplies of 212.83 million tons, on average.
Global use of wheat in livestock feed will total 131.06 million tons, up from 130.66 million estimated last month, the USDA said. Corn futures for May delivery are trading near parity with wheat on the Chicago Board of Trade, compared with an average discount of about 91 cents in the past year. Global wheat exports may reach 142.93 million tons, up from 140.25 million forecast last month.
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March 6th, 2012
Wheat Futures – Wheat crops worldwide will probably decline 2 percent in the year starting July 1 as yields return to average after record production, said Australia’s government commodity forecaster.
Harvests may drop to 682 million metric tons from 693 million tons as consumption gains 0.3 percent to 681 million tons, the Canberra-based Australian Bureau of Agricultural and Resource Economics and Sciences said today. The world wheat indicator price will drop 7 percent to average about $275 a ton.
Wheat futures have tumbled 17 percent in the past year as global production and inventories headed for all-time highs and world trade surged to the second-highest level in at least in five decades. Global stockpiles may reach 220 million tons in 2012-2013 from 213 million tons a year earlier, Mike O’Dea, a senior risk manager at INTL FCStone Inc., said Feb. 22.
“If we see supply increasing more strongly than what it has and stocks continue to rise, that will put pressure on prices,” said Paul Morris, bureau executive director, in an interview yesterday.
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February 17th, 2012
Wheat futures 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, Department of Agriculture data show.
“The weekly U.S. export figures published yesterday by the U.S. Department of Agriculture are also providing tailwind” for prices, said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, in a report today. “The brightening of sentiment on the financial markets is also giving buoyancy to prices of grains and oilseeds.”
Wheat futures for May delivery gained 1.3 percent to $6.435 a bushel by 11:45 a.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 1.1 percent to 208.25 euros ($273.47) a metric ton on NYSE Liffe in Paris.
Corn futures for May delivery climbed 0.7 percent to $6.44 a bushel in Chicago, taking gains for the most-active contract to 1.9 percent this week.
Soybean futures for May-delivery rose 0.5 percent to $12.7075 a bushel. The most-active contract is set for a 3.4 percent gain this week, the biggest since the five days ended Oct. 14.
Argentina’s soybean harvest may reach 43.5 million tons to 45 million tons, the Agriculture Ministry said yesterday. That compares with a 48 million-ton forecast by the U.S. Department of Agriculture on Feb. 9.
“Recent developments in the soybean market have so far buttressed” the bullish view on the oilseed in 2012, Abah Ofon, an analyst Standard Chartered Plc, said in an e-mail.
- Luzi Ann Javier in Singapore and Tony C. Dreibus in London at Bloomberg.
February 15th, 2012
Wheat futures rose in Chicago on speculation freezing weather will curb Ukrainian production and exports of the grain. Soybeans climbed for a fourth session.
“Extreme cold weather” in the past three weeks hurt plants in Ukraine that lacked protective snow cover, Telvent DTN said in a report yesterday. Ice at ports and in shipping lanes is slowing deliveries from the country, Christopher Gadd, a London-based analyst at Macquarie Group Ltd., said today.
“The ports are frozen up, and moving grain around right now is a nightmare,” Gadd said by phone. “There are massive issues that are limiting grain exports out of the region. You can’t see selling pressure come back to the wheat complex until you see the weather abate in the Black Sea region.”
Wheat futures for May delivery gained 0.2 percent to $6.405 a bushel by 1:15 p.m. London time on the Chicago Board of Trade, paring an increase of as much as 0.7 percent. Milling wheat for May delivery traded on NYSE Liffe in Paris fell 0.4 percent to 205 euros ($268) a metric ton.
Ukraine is the seventh-biggest global wheat exporter, according to the U.S. Department of Agriculture. A cold front killed hundreds of people in eastern Europe in the last few weeks and disrupted shipping traffic on the Danube river.
Soybean futures for May delivery gained 0.6 percent to $12.695 a bushel in Chicago, for a 3.4 percent increase since trading ended on Feb. 9. The oilseed rose on speculation rainfall in Brazil will delay harvesting after dry weather curbed production in the country, predicted by the USDA to be the world’s biggest exporter this year.
Scattered showers fell yesterday in the Brazilian states of Mato Grosso, Goias, Sao Paulo, Parana and Mato Grosso do Sul, causing some interruptions to soybean harvesting, Commodity Weather Group said in a report today.
Corn futures for May delivery was little changed at $6.3825 a bushel. The grain has dropped 1.3 percent this year.
- By Tony C. Dreibus Bloomberg.