Conjecture about constricting worldwide supplies due to inclement weather helped push wheat futures to their top price in five weeks, according to Bloomberg.
The deterioration of crops because of dry weather in the U.S. and rain delays in regions of Europe drove the grain higher on Wednesday. Nearly 40 percent of the winter crop of wheat in the U.S. either was in good or excellent condition as of this past Sunday, according to the U.S. Department of Agriculture.
"In the U.S. Plains, they're going into dormancy in very dry conditions," risk-management consultant Mike O'Dea with INTL FCStone in Missouri told the news source on Wednesday, noting increases to French prices "will give the impression that U.S. grain is undervalued compared to the world market."
At 11:46 a.m. on Wednesday, wheat futures gained 1.97 percent, a 0.1725 cent gain to $8.9425 per bushel.
Reuters reports the grain has increased in value five consecutive days as losses to the shared currency of the European Union kept optimism high for prospects of wheat exports from Europe.
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