US wheat prices rise on winter crop concerns

US wheat prices rose on Thursday (Oct 29), despite the worst start in eight years for the crop, largely due to a dry fall that has left parched fields in growing regions such as the US Midwest.

Wheat for December delivery gained US$0.16 to US$7.18 a bushel. December corn increased US$0.018 to US$5.79 a bushel and January soy remained at US$12.36 a bushel.

Other commodities surged after the dollar grew weaker against other currencies. Since most commodities are priced in dollars, a weaker dollar makes them more of a bargain for traders using foreign currencies.

Commodities have moved largely on the dollar ahead of next week's Federal Reserve meeting, where the policymakers may announce new steps to stimulate the economy. Many expect them to launch a bond-buying program, which would pressure the dolla.