Futures Market News
Wheat futures drop amid snow forecast
Mar 01, 2012 04:03 PM
As the globe's top grower and exporter of the grain, the U.S. is set to endure storms in key regions. Areas of North Dakota, the top-growing state in the nation, are readying for snowstorms. Arid soil thus will be more fertile, which will help boost supplies of wheat. But the storms are likely to steer clear of the state's eastern region and the western strongholds of Minnesota. Kansas, the second-biggest grower of the grain, is forecast to absorb rain, which will benefit the soil and crops as well.
"There is speculation that winter storms in the northern U.S. will increase soil-moisture levels in the run-up to the spring sowing period over the next two months," analyst Carsten Fritsch with Commerzbank AG in Frankfurt told Bloomberg.
At 2:15 p.m. on Thursday, wheat futures dropped 0.6 percent, a 4 cent loss to $6.64 per bushel.
Reuters reports Iran purchased 120,000 tons of red winter wheat from the U.S., a development that raised some eyebrows given the standoff between the two nations regarding Iran's nuclear program.
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