Thursday 12 July 2012
The grain market getting more corrupt
U.S. wheat futures are trading higher Wednesday morning, boosted by higher corn prices and lower estimated wheat plantings in Canada.
In electronic trading, Chicago Board of Trade futures for July delivery are up 6 cents, or 0.8%, at $7.35 a bushel. Kansas City Board of Trade July wheat is up 6 3/4 cents, or 0.9%, at $7.42 1/2 a bushel. MGEX July wheat is up 14 1/2 cents, or 1.7%, at $8.67 1/2 a bushel.
Corn futures are trading higher Wednesday, extending a sharp rally this week founded on worries about dry, hot weather that could reduce the crop's size. That is boosting wheat as well since higher corn prices could lead to more demand for wheat to replace corn in animal feed.
"You're getting some sympathy buying and spillover buying out of the corn rally," said Mike Zuzolo, president of Global Commodity Analytics and Consulting.
Wheat is also benefiting from lower expected Canadian wheat acreage. Statistics Canada on Wednesday morning issued updated crop-area estimates, including a lower forecast for wheat acreage.
The organization forecast total wheat acres of 23.81 million, down from a March forecast of 24.32 million due to lower spring wheat and durum plantings. Total wheat plantings in Canada last year were 21.46 million acres...
Source: Argentine Beef Packers S.A.
Back to News Headlines