Wheat extends gains as snow, rain may damage US winter crop
Wednesday, 16 December 2009
TOKYO, Dec 15 (Bloomberg): Wheat climbed for a fourth day on speculation that snow storms in the US and reduced planting in Europe may limit northern hemisphere supplies.
"This year the US had snow earlier than usual and more rain," said Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo. The European Union wheat harvest this year will be smaller than estimated in September on lower plantings, according to Coceral, a European association of grain and oilseed trade groups.
"Above normal precipitation is not favorable for the US winter wheat crop," Shigemoto said. "The lower forecast for the EU wheat harvest also helped support the market."
Wheat for March delivery climbed as much as 0.6 per cent to $5.47 a bushel in electronic trading on the Chicago Board of Trade. It traded at $5.4575 at 2:33 p.m in Tokyo, having risen 1.1 per cent Monday, the biggest gain since November 30.
European Union farmers will harvest 130.8 million metric tonnes of soft-wheat in the year through June, down from 140.9 million tonnes a year earlier and an earlier forecast of 130.9 million tonnes, Brussels-based Coceral said yesterday in a report.
Durum wheat production will drop to 8.26 million tonnes from 9.59 million tonnes a year earlier and a September estimate of 8.64 million tonnes, according to the group.
March-delivery rough rice was down 0.2 per cent at $16.24 per 100 pounds after jumping 2 per cent to $16.27 yesterday, the highest level since November 5, 2008.
Prices have gained 6 per cent this month as the Philippines accelerated imports to replace lost local production and on speculation drought may force India, the second-largest grower, to become a net importer for the first time in two decades.
"This year the US had snow earlier than usual and more rain," said Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo. The European Union wheat harvest this year will be smaller than estimated in September on lower plantings, according to Coceral, a European association of grain and oilseed trade groups.
"Above normal precipitation is not favorable for the US winter wheat crop," Shigemoto said. "The lower forecast for the EU wheat harvest also helped support the market."
Wheat for March delivery climbed as much as 0.6 per cent to $5.47 a bushel in electronic trading on the Chicago Board of Trade. It traded at $5.4575 at 2:33 p.m in Tokyo, having risen 1.1 per cent Monday, the biggest gain since November 30.
European Union farmers will harvest 130.8 million metric tonnes of soft-wheat in the year through June, down from 140.9 million tonnes a year earlier and an earlier forecast of 130.9 million tonnes, Brussels-based Coceral said yesterday in a report.
Durum wheat production will drop to 8.26 million tonnes from 9.59 million tonnes a year earlier and a September estimate of 8.64 million tonnes, according to the group.
March-delivery rough rice was down 0.2 per cent at $16.24 per 100 pounds after jumping 2 per cent to $16.27 yesterday, the highest level since November 5, 2008.
Prices have gained 6 per cent this month as the Philippines accelerated imports to replace lost local production and on speculation drought may force India, the second-largest grower, to become a net importer for the first time in two decades.