Futures Market News
Weather pushes down price of wheat futures
Jan 25, 2011 08:57 AM
Wheat futures slipped amidst conjecture about investor demand for the commodity decreasing, Bloomberg reports.
Shortly after 8 a.m., wheat was down 1.53 percent, a 1.275 cent reduction to $8.225 per bushel. The commodity had rallied to a five-month high, but the performance changed very recently.
"The wheat market has been strong and last night outstripped the gains across the other commodity classes," Luke Mathews, a strategist at Commonwealth Bank of Australia, told Bloomberg.
Inclement weather is also impacting the price of wheat and other grains. The Australian state of Queensland, a large producer of grains, has endured flooding for the past month as the nation finds itself in the rainy season, which will not let up until late March.
Other high-producing grain regions also have suffered as a result of the weather.
"Everybody is aware of the weather situations going on right now," Connor Noonan, an analyst with Castlestone Management in London, told Bloomberg. "Everybody has priced in the floods in Australia, and now we have flooding in South America. All of that combined, people are taking a little off the table."
Don’t Miss Our News Updates!
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: Receive Your FREE Grain Futures eBook
Download “Inside the Grain & Oilseed Markets” today!
Whether you are new to the agricultural commodities industry or a seasoned trader, it is important to have a solid understanding of the markets to assist you and your trading strategies. From its unique specifications to its key fundamentals, learn how this important sector came to be.
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.