January 5, 2011

CBOT wheat prices surge on global weather concerns

Chicago wheat prices are surging as weather problems in Australia, the US and China spark concerns about the quantity and quality of global supplies.

Wheat for March delivery rose 11.25 cents to settle at US$8.055 a bushel Monday (Jan 3).

Heavy rains have flooded a vast area of the Queensland state of Australia, one of the world's top exporters of the grain. Meanwhile cold, dry weather may be affecting the winter wheat crop in the United States and in a key growing region in China.

The bad weather comes on the heels of a year in which wheat crops were damaged by drought in Russia and rain in other regions.