November 25, 2010

CBOT wheat gains as signs of economic growth revives prospects
 
 

CBOT wheat prices rose the most this week as signs of a rebound in the global economy improved prospects for grain demand and adverse weather threatened yields in the US, the world's largest exporter.

Americans filed the fewest unemployment claims in more than two years and US consumer spending increased for a fifth month in October, government reports showed, bolstering optimism in the recovery.

Germany's business confidence jumped to a record this month. About 47% of the US wheat crop was in good or excellent condition as of November 21, compared with 64% a year earlier, the USDA said.

"Uncertainty about the health of the US crop may help to boost demand" as the economy gains momentum, said an analyst.

Wheat futures for March delivery rose US$0.035 or 0.5%, to US$6.8425 a bushel on CBOT. A close at that price would be the biggest gain since November 18. Before Wednesday (Nov 23), futures gained 26% this year.