April 30, 2008

US wheat growers to pre-sell crop while prices still high

US wheat growers are encouraged to pre-sell up to one third of their crop as the grain prices are still high.

Wheat has fallen to US$8.73 a bushel on the Chicago Wheat Futures, which is down from the record US$12.50 in March.

Commodities trader Richard Koch said prices would fall further as the northern hemisphere harvest gets underway in June.

Koch said hedging against further falls will give growers greater certainty. He estimated that wheat prices could fall into the range of US$7-8 a bushel.

part from late season production in the northern hemisphere, the market has yet to see what happens to US corn prices, Koch added.