The heavy rains that pelted the Midwest over the last week and the slowing Russian supply have led wheat prices to rise on Monday. Reuters reported that wheat climbed to its highest level in the last two weeks.
Analysts believe that the inclement Midwestern weather which included an October frost, slackening Russian supply and high U.S. demand for the crop are the most likely causes of the rise in prices. Investors are pointing to the weather, in particular, as the main driver of rising prices. The rains and frosts held back most U.S. harvesting efforts during the latter half of last week.
PorkNetwork reported that December CBOT wheat advanced 6.5 cents to $4.9225 per bushel in early Monday trading, while December KC wheat vaulted 7.25 cents to $5.7525 per bushel, and December MWE wheat rose 6.0 to $5.495.
PorkNetwork wrote that while the U.S. wheat harvest is mostly complete, a weak Canadian harvest and Russia's exit from the market may lead to further price increases for the commodity.
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