The price of wheat climbed the most in 14 days as a result of the globe's largest producer and consumer confronting food inflation, Bloomberg reports.
This year's imports of the grain to China might exceed last year's by 500,000 tons, according to a report by the China National Grain & Oils Information Center. Conjecture about Russia being short on fertilizer also pushed up the commodity's price.
"The Chinese wheat sales are a sign of shortage and desperation to control inflation," Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana, told Bloomberg. "The fear of food shortage will lead the China government to import more grains to rebuild stocks."
Shortly after 1 p.m., the price of wheat for March delivery was up 1.8 percent, an increase of 13.25 cents to $7.70 per bushel, on the Chicago Board of Trade.
Russia's fertilizer supply is low enough that its spring planting is in peril, according to Doug Bergman, a grain broker at Advantage Traders Group in Chicago.
"Reports that Russia may not be able to boost wheat production next year helped to bring in some buying today," Bergman told Bloomberg. "Russia is still trying to recover from a major drought, which could also cut yields without an improvement in moisture the next several months."
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