Wheat futures gains on rising US grain demand

Wheat gained for the fourth consecutive session on signs of rising demand for US grain.

 

About 10.6 million bushels of wheat were inspected for export in the week ended January 1, more than double the previous week, said the USDA.

 

The US has exported 17.3 million tonnes of wheat since the marketing year began June 1, or 63 percent of projected wheat exports for the entire year, up 5 percent from the five-year average of 58 percent.

 

CBOT wheat futures for March delivery increased 5.75 cents or 0.9 percent to US$6.1675 per bushel.

 

As of December 25, overseas buyers committed to purchase 21.9 million tonnes of US wheat, down 25 percent on-year, said the USDA.

 

With the New Year, index- and hedge-fund manager will begin increasing their positions in wheat contracts, which will cause volume to grow, said Jason Britt, president of Central States Commodities Inc. in Kansas City, Missouri.

 

Fundamentals such as supply and demand will also play a more central role in the rising or declining of prices, said Britt.

 

Still, 86 percent of the winter wheat is rated either good or fair.

 

Wheat is the fourth largest US crop, valued at US$13.7 billion in 2007, behind corn, soy and hay, according to government data.