June 19, 2008
US wheat prices to climb on increased demand from livestock producers
US wheat prices are expected to be propelled by the increased demand from livestock producers who have been using more of the grain in animal feed as corn hits historical highs.
Corn prices have risen by 71 percent this year and hit US$7.92 on June 16 due to flood disaster.
Wheat prices on the other hand only inched up by 4 percent in 2008.
Tomm Pfitzenmaier, partner at Summit Commodity Brokerage in Des Moines, pointed out the possibility of wheat going to be used more for feed due to rising corn prices.
US wheat for September delivery rose 4.75 cents, or 0.5 percent, to US$9.21 a bushel on the CBOT.
The price has gained 53 percent in 2007 due to unfavourable weather.
Most-active futures still have declined 32 percent since reaching a record US$13.495 a bushel on February 27, 2008 as growers worldwide seeded more to capitalize on higher prices.
