February 5, 2014
US wheat prices rise as traders change bets
Wheat prices are rebounding from low levels. The grain settled at US$202 per tonne on January 29, their lowest price in 3½ years.
While it is unlikely that the colder weather will significantly damage this year's crop, it did prompt traders to change bets on further declines. Traders started buying wheat contracts to cover what they feared could become losing bets, said Todd Hultman, a grains analyst at DTN.
"Wheat prices have fallen sharply for three months and have gotten to very cheap levels," and traders were nervous about betting against more declines, he said.
In other trading of agricultural futures, corn and soy have seen increases. March corn rose by US$0.06, or 1.4%, at US$174 per tonne. Soy for the same month climbed US$0.205, or 1.6%, at US$482 per tonne.
