November 30, 2010

Australian wheat prices rise as rain hits crop

Wheat prices edged higher on Monday (Nov 29) after rainstorms affected the crop in eastern Australia, one of the world's top exporters of the grain.

Australia had been expected to produce a robust harvest but the rains may have reduced the amount of wheat available for human consumption, an analyst said.

"It has been an ongoing thing as they go through their harvest. There has been too much water this year," he said.

Wheat for March delivery rose AUD0.0325 (US$0.0313) to settle at AUD6.905 (US$6.647) a bushel after hitting AUD6.945 (US$6.686) a bushel earlier in the day. March corn added AUD0.0025 (US$0.0024) to AUD5.533 (US$5.326) a bushel while January soy lost AUD0.035 (US$0.034) to AUD12.35 (US$11.88) a bushel.