Futures Market News
High temps, low rainfall pushing up wheat, corn
Dec 28, 2011 05:11 PM
Wheat is expected to see sizable gains in coming days as several of the world's largest producers struggle through high temperatures and low precipitation.
Bloomberg reports that much of the southern Plains region of the U.S., including major wheat growing states like Texas, Oklahoma and Kansas continue to suffer from the droughts that plagued the region over the summer, and unusually high temperatures only look to worsen the problem.
"We’re looking at drier weather with no follow-up snow from the storms a couple of weeks back," Mike Zuzolo, the president of Global Commodity Analytics & Consulting, told the news source.
Corn has suffered a similar fate, according to The Financial Times, reaching its highest value in more than one month as concerns grow about hot, dry weather in Argentina and Brazil, the second- and fourth-largest exporters of the grain in the world.
Bloomberg notes that raised prices for corn could also serve to support higher wheat prices, as more of the grain goes to feedstock and export.
As of 2:15 p.m. on Wednesday, December 28, corn prices had risen 1.46 percent to $9.25 per bushel, while wheat had jumped 1.01 percent to $6.50 per bushel.
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