Futures Market News
Wheat futures drop amid snow forecast
Mar 01, 2012 04:03 PM
Conjecture about inclement weather in sections of the U.S. pulled down the price of wheat futures on Thursday, marking the second consecutive day of losses, according to Bloomberg.
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.
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: Futures Traders’ Guide to the WASDE
Improve Your Understanding of the Grain Markets!
With this guide, you will learn how to use these fundamental reports to forecast the price of Corn, Soybeans and Wheat. Now that the markets are open during the release of the WASDE, understanding how this very important USDA report can impact the markets is as critical as ever.
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.
