By Phoebe Sedgman - Oct 21, 2013
Bloomberg
Wheat climbed for a third day to the highest level in four months as cold and dry weather damaged crops in Argentina, threatening to curb record global supplies.
The contract for December delivery on the Chicago Board of Trade gained as much as 0.8 percent to $7.1125 a bushel, the highest price for most-active futures since June 21, and was at $7.1025 by 12:48 p.m. in Singapore. Prices rose 2 percent last week, advancing for a fifth straight week.
About 100,000 hectares (247,105 acres) were damaged in Entre Rios and La Pampa provinces due to cold weather and lack of rain, according to the Argentine Agriculture Ministry. The country is the top exporter in the Southern Hemisphere after Australia, according to the U.S. Department of Agriculture. Wheat declined 8.7 percent this year as the USDA predicts global production will jump to a record 708.9 million metric tons.
“Lower wheat production in Argentina limits their exportable surplus and means Brazil will remain large buyers of U.S. wheat,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today.
Argentina will harvest 8.8 million tons in 2013-2014, the country’s agriculture ministry said Oct. 17. The USDA predicts production of 12 million tons. The agency’s reports were halted due to the 16-day government shutdown that started Oct. 1.
Colder weather could produce some frost in Argentina’s southern areas early this week, possibly damaging heading wheat, forecaster DTN said Oct. 18.
Russia may lose 4 million tons from its potential harvest after rains restricted planting of winter crops, the Institute for Agricultural Market Studies said last week.
Corn for December delivery fell 0.1 percent to $4.41 a bushel. Soybeans for delivery in November were little changed at $12.915 a bushel.
Bloomberg
Wheat climbed for a third day to the highest level in four months as cold and dry weather damaged crops in Argentina, threatening to curb record global supplies.
The contract for December delivery on the Chicago Board of Trade gained as much as 0.8 percent to $7.1125 a bushel, the highest price for most-active futures since June 21, and was at $7.1025 by 12:48 p.m. in Singapore. Prices rose 2 percent last week, advancing for a fifth straight week.
About 100,000 hectares (247,105 acres) were damaged in Entre Rios and La Pampa provinces due to cold weather and lack of rain, according to the Argentine Agriculture Ministry. The country is the top exporter in the Southern Hemisphere after Australia, according to the U.S. Department of Agriculture. Wheat declined 8.7 percent this year as the USDA predicts global production will jump to a record 708.9 million metric tons.
“Lower wheat production in Argentina limits their exportable surplus and means Brazil will remain large buyers of U.S. wheat,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today.
Argentina will harvest 8.8 million tons in 2013-2014, the country’s agriculture ministry said Oct. 17. The USDA predicts production of 12 million tons. The agency’s reports were halted due to the 16-day government shutdown that started Oct. 1.
Colder weather could produce some frost in Argentina’s southern areas early this week, possibly damaging heading wheat, forecaster DTN said Oct. 18.
Russia may lose 4 million tons from its potential harvest after rains restricted planting of winter crops, the Institute for Agricultural Market Studies said last week.
Corn for December delivery fell 0.1 percent to $4.41 a bushel. Soybeans for delivery in November were little changed at $12.915 a bushel.
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