January 30, 2008

US wheat contract hits record US$13 per bushel

The Minneapolis Grain Exchange March wheat future Tuesday (January 30, 2008) became the first wheat contract ever to climb above US$13 per bushel at a US exchange.

At the opening of the day session, MGE March wheat soared limit up, or 30 cents higher, to US$13.27 per bushel, matching the record price reached in overnight electronic trading. The previous high of US$12.97 was set Monday.

"Wheat in the teens does not have a catchy ring like beans in the teens, but that's where Minneapolis wheat reached overnight," said Bill Nelson, associate vice president for AG Edwards & Sons, in a note to clients.

Solid demand for spring wheat, traded at the MGE, and fears about shrinking supplies have prodded bulls to push the nearby contract limit-up for four consecutive day sessions, traders said. Nearby Chicago Board of Trade and Kansas City Board of Trade wheat futures also touched limit up on spillover support from the MGE rally, they said.

CBOT and KCBT wheat trimmed gain after the early surge. At 11:15 a.m. EST, CBOT March wheat was up 5 cents at US$9.68, KCBT March wheat was up 10 cents at US$10.10, and MGE March wheat remained limit up.