Jan 31, 2012

Wheat futures rose in Chicago, heading for a second monthly gain, on speculation cold weather in Europe will hurt winter crops that lack protective snow cover. Corn and soybeans climbed.

Temperatures tomorrow may fall as low as minus 15 degrees Fahrenheit in Ukraine, Joel Burgio, a senior meteorologist at Telvent DTN, said in a report yesterday. That may damage plants that aren’t covered by snow. Prices also advanced as a Russian official said the country’s government will consider taxing grain exports.

“There’s a massive cold front coming through,” said William Adams, a portfolio manager at Resilience AG in Zurich. “Ukraine wheat production is expected to drop a bit, and that’s going to pressure wheat.”

Wheat futures for March delivery increased 1.9 percent to $6.57 a bushel by 1:15 p.m. London time on the Chicago Board of Trade. The most-active contract has gained 0.7 this month. Milling wheat for March delivery traded on NYSE Liffe in Paris rose 2.3 percent to 213.75 euros ($281.65) a metric ton.

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