Futures Market News
Scorching weather now afflicting Germany as well
Jul 30, 2010 10:37 AM
The problems began in Russia, where relentlessly high temperatures and a parching drought are raising fears that wheat harvests in Russia and its former satellites will fall far short. Now, Germany may see its own wheat crop drop by almost 9 percent this year, further raising prices of the grain.
Bloomberg News reported on comments from Alfred C. Toepfer International GmBH, which reversed its predictions of an increased yield. The trader cited "dry conditions" and "extremely high daytime temperatures" which will affect the summer harvest severely.
On the Chicago Board of Trade, wheat futures for September delivery rose 10.2 cents to $6.376 per bushel.
Food prices have risen at an extremely rapid rate over the past few years, driven by growing populations around the world and the increased consumption of resource-intensive foods like beef in emerging markets like China.
The widespread use of food grains like corn in producing bio-ethanol has also played a role, as food consumption competes with industry for limited supplies.
To meet the gap in supply, growers in the U.S. - the world's largest exporter of wheat - will probably have to step up their exports, which will at least be beneficial for the American agricultural sector.
Egypt recently booked huge cargoes of U.S. wheat, trying to lock in prices before a potential spike.
Don’t Miss Our News Updates!
Share dt News:
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Wealth Empowerment Guide
Learn how to trade commodity futures and options using funds from an IRA or 401(k)!
Is your IRA parked in some mutual fund, going nowhere? Why not take control? Trade futures direct with a broker, trade online, and even invest in a managed account with a Commodity Trading Advisor. We are here to help!
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.
