CBOT wheat futures rise on speculation of Russia's dry weather
CBOT wheat futures rallied, erasing earlier losses, on speculation that dry weather in Russia, the world's fourth-biggest exporter, will limit global supply.
Russia's worst drought in a decade has damaged more than half the grain planted in 11 regions, and dry weather may persist for the rest of July, said Anna Strashnaya, head of agro-meteorological forecasts at the Federal Hydrometeorological Service. US is the biggest exporter, followed by Canada and Australia, USDA data show.
The Russian drought "is the most bullish side of the wheat market right now," said Darrell Holaday, the president of Advanced Market Concepts in Manhattan, Kansas. "Maybe that puts a bottom in the market. The question is how much more upside can you get out of this?"
Wheat futures for September delivery rose 0.75 cent, or 0.1%, to US$5.3875 a bushel at 12:13 p.m. on the CBOT. Before today (July 12), wheat jumped 26% in the past month, partly on signs that global output will not keep pace with demand.
Wheat is the fourth-biggest US crop, valued at US$10.6 billion in 2009, behind corn, soy and hay, government data show.
