Importers' growing demands for U.S. grain prompted wheat futures to climb for the first time in 72 hours, Bloomberg reports.
As the world's biggest exporter of grain, the U.S. agricultural industry is the biggest beneficiary of inclement weather in Australia, which is delaying harvesting and a drought that forced Russia to cease all exports through July.
"Australia's having a problem and the world situation looks like it’s tightening, and as prices start creeping up, the herd mentality sets in," Jason Britt, president of Central States Commodities Inc. in Kansas City, Missouri, told Bloomberg. Importers "think they better get things bought before it goes higher."
As much as three million tons of the commodity will not be harvested in Australia as a result of heavy rains, according to the largest exporter in Western Australia. The country's Meteorology Bureau reported Australia had its wettest September, October and November ever.
"The bottom line is, we're awfully tight on good-quality wheat for milling purposes, and it's going to stay that way for a while," Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana, told Bloomberg.
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