Corn and wheat futures rose on Thursday, reflecting commodities brokers' concern that a heat wave across the Midwest will negatively impact the corn crop. Tomorrow, the U.S. Department of Agriculture is scheduled to release updated figures on its projected yield and production forecasts.
On the Chicago Board of Trade, wheat futures for September delivery gained 9.4 cents to trade at $4.70 per bushel, while December delivery futures rose 5 cents to $4.81 per bushel. Wheat futures for September delivery also gained, rising 26.6 cents to trade at $7.054 per bushel.
"Early corn yields are disappointing in central Iowa," Kent Jessen, the director of merchandising for Heartland Cooperative in Iowa, told Bloomberg News.
Across the globe, Russia once again cut its wheat harvest forecast, this time to 60 million metric tons. Last year's production was 97.1 million tons, and the world's third-largest producer of wheat had expected similar numbers for this year, until a devastating drought ruined crops.
"If after the New Year prices go up, the government will stamp this out through its intervention fund," Russian Deputy Agriculture Minister Sergei Korolyov said at a conference in Moscow. "the government won't allow prices to rise."
The Russian government has stockpiled around 25 million tons of wheat.
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