Aussie weather to push down price of wheat
Forecasts for pleasant weather in Australia helped push down the price of wheat to its lowest value in 14 days, Bloomberg reports.
Dry weather in high-grain production regions in the globe's fourth-largest exporter will very nicely complement the recent sprinkling of rain, according to meteorologists. Much of those regions had record amounts of rainfall in September, October and November, which downgraded quality of the commodity.
Australia has "dried up some, so we've taken that support away from the market," Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas, told Bloomberg. "There's still a fair amount of wheat in the world."
This year's largest exporter of wheat is slated to be the U.S., according to the International Grains Council. France and Canada rank second and third, respectively.
March-delivery wheat slipped 0.15 cents, two percent, to $7.4975 per bushel shortly after 1 p.m. Thursday on the Chicago Board of Trade. Earlier on Thursday, the commodity struck $7.46, its lowest price since early December. Thus far this year the value of the grain has soared 38 percent after inclement weather in high-grain regions of Russia and the U.S.
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