September 18, 2010

CBOT wheat rises amid cold weather threat

Wheat futures rose on Friday (Sep 17) as cold weather threatened crops in Canada, the world's second-biggest exporter, and in China.

An overnight freeze damaged wheat, canola and barley in Alberta and Saskatchewan, said Drew Lerner, the president of World Weather Inc. in Overland Park, Kansas. In China, the cold may hurt corn in the biggest growing region, according to a National Grain & Oils Information Centre website. That may boost demand for wheat for use in livestock feed.

"Canada's harvest problems are helping prices," said Darrell Holaday, the president of Advanced Market Concepts in Manhattan, Kansas. "The Chinese freeze threat is another thing. We're going from one weather scare to another."

On Friday, wheat futures for December delivery rose 8.5 cents, or 1.2%, to US$7.2775 a bushel at 9:57 a.m. on the Chicago Board of Trade.

The US is the biggest wheat exporter, followed by Canada, Russia and Australia, according to the Department of Agriculture. The grain is the fourth-biggest US crop, valued at US$10.6 billion in 2009.