The price of wheat futures climbed again in Tuesday's trading, as it appeared likely that dry weather across the Great Plains in Kansas and Nebraska will cut down on wheat yields in the coming year.
"We are seeding wheat now, and in a good many areas we have some dry conditions," Dewey Strickler, the president of Ag Watch Market Advisers in Nashville, Tennessee, told Bloomberg News. "It could be a problem if places receive a little moisture and then it ceases. That will hurt a wheat crop quicker than anything, because if you get moisture and it turns drought, that will kill the sprout."
The U.S. Department of Agriculture already warned of a relatively dramatic decrease in the projected yields from corn fields, and to a lesser degree soybean fields, in a report on Friday. That news caused wheat, corn and soybeans to spike to their Chicago Mercantile Exchange-imposed trading limits, and all three commodity futures have been in a bullish market since.
On the Globex electronic trading platform, wheat futures for December 2010 delivery rose 6.75 cents to trade at $7.16 per bushel.
March 2011 wheat futures rose half a cent to $7.45 per bushel.
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