May 24, 2012
Ukraine's wheat futures drop first time in seven sessions
For the first time in seven sessions, Ukraine's wheat futures dropped on assumption that rain in parts of the country and Russia will ease concern about crop damage from the drought.
Temperatures are also expected to decline in Ukraine, according to the Meteorology Center in Kiev. That will benefit wheat that's at the critical stage when the head of the plant that contains the grain emerges, Telvent DTN said in a report. Some rain is also expected in grain-growing areas of Russia, Telvent said.
"There's talk about a little scattered rain in Ukraine," said Jim Hemminger, a risk-management specialist at Top Third Ag Marketing in Chicago. "Wheat is so fickle, if it does get a little rain" it can rebound from dry conditions, he said.
Wheat futures for July delivery dropped 1.2% to US$6.9525 a bushel at 10 a.m. on the CBOT. The price gained 18% in the previous six sessions as hot, dry weather curbed production in the US southern Great Plains and in the Black Sea region that includes parts of Russia and Ukraine.
Wheat is the fourth-largest US crop, valued at US$14.4 billion in 2011, behind corn, soy and hay, USDA data show.