January 28, 2011

Global wheat prices rise with concerns on global supply

Global wheat prices are increasing as scorching weather in China and the US creates new concerns about global supplies.

Wheat rose 18.25 cents to settle Wednesday (Jan 26) at US$8.565 a bushel. Stockpiles have been affected by weather problems for months. Now China's key wheat-growing province is facing its worst drought in at least 40 years.

Simultaneously, there is uncertainty about how much impact Australia's floods have had on its wheat crop and if dry weather is affecting the US winter wheat crop.

The United Nations is urging governments to avoid export restrictions or other short-term measures to cope with rising food prices. It says such steps can make matters worse by driving up global prices.