October 22, 2010

US wheat falls to lowest price in two weeks on improved weather

US wheat fell to the lowest level in almost two weeks on speculation that rain will improve early development of winter crops in the US Great Plains.

Growing regions in the Plains may get two centimeters of rain in the next two days, with some areas getting as much as 3.81 centimetres, according to World Weather Inc. Most of Kansas, Oklahoma, Texas, and eastern Nebraska have had less than half the normal amount of precipitation this month, according to the National Weather Service.

Wheat futures for December delivery fell US$0.143, or 2.1%, to close at US$6.688 a bushel on CBOT. Earlier, the price touched US$6.67, the lowest level since October 8. The grain has jumped 39% since the end of June after drought in Russia and Eastern Europe slashed output.

Wheat is the fourth-biggest US crop, valued at US$10.6 billion in 2009, behind corn and soy, according to the US government.