Deputy Prime Minister Viktor Zubkov, the top agriculture official in Russia, said Russia could resume exporting wheat in October.
Before a final decision is made, Zubkov said they'll look at the final figures concerning the wheat harvest.
Countries like Israel, Turkey and Egypt are major importers of Russian wheat, and have been in close contact with Zubkov concerning whether they'll be exporting wheat, in order to develop alternative sources if Russia continues the wheat export ban.
Even with ample global wheat supplies, the price of wheat shot up after the Russian announcement they were suspending exports. That is based on emotion rather on the reality there could be a wheat shortage, which there isn't.
Showing posts with label Wheat Exports. Show all posts
Showing posts with label Wheat Exports. Show all posts
Tuesday, August 10, 2010
Tuesday, March 30, 2010
Wheat Futures Rise on Short Covering
Wheat Futures Prices
Although wheat futures prices will remain under downward pressure, they did get some respite today as short-covering gave it a nice jump today, even after the spot contract plunged to an almost 6-month low.
The May wheat contract was ahead by 5 1/2 cents at $4.70 1/4 a bushel by 12:10 p.m., after falling to $4.62 1/4, a contract low and the lowest spot wheat price since October.
Price competition and a burgeoning global wheat supply has kept the price of wheat down for some time, and things don't look like they're going to change any time soon.
Wheat Futures Prices
Although wheat futures prices will remain under downward pressure, they did get some respite today as short-covering gave it a nice jump today, even after the spot contract plunged to an almost 6-month low.
The May wheat contract was ahead by 5 1/2 cents at $4.70 1/4 a bushel by 12:10 p.m., after falling to $4.62 1/4, a contract low and the lowest spot wheat price since October.
Price competition and a burgeoning global wheat supply has kept the price of wheat down for some time, and things don't look like they're going to change any time soon.
Wheat Futures Prices
Tuesday, March 2, 2010
Wheat Futures Prices Fall
Wheat Futures and Wheat Inventories
I've been watching this story unfold for the last couple of years, and it's no surprise that so many wheat farmers have plunged into planting more wheat acreage after the great prices in 2008.
The problem is it was those who had wheat in the fields that year which prospered, not the followers you predictably followed up with large plantings which were assuredly going to drive wheat prices down; and they have.
Again wheat prices fell, as the U.S. dollar increased in value, making export demands fall in the U.S.
The drop of 14.75 cents a bushel to $5.045 on the Chicago Board of Trade was the worst since February 3, and there's really nothing in the fundamentals which will change this for wheat or wheat farmers; or wheat investors for that matter, as couple that with strong wheat inventories around the world and there's little out there that could change this situation.
Farmers need to grow something else if they want to generate profits, not follow the herd the year after great prices were attained.
Wheat Futures and Wheat Inventories
I've been watching this story unfold for the last couple of years, and it's no surprise that so many wheat farmers have plunged into planting more wheat acreage after the great prices in 2008.
The problem is it was those who had wheat in the fields that year which prospered, not the followers you predictably followed up with large plantings which were assuredly going to drive wheat prices down; and they have.
Again wheat prices fell, as the U.S. dollar increased in value, making export demands fall in the U.S.
The drop of 14.75 cents a bushel to $5.045 on the Chicago Board of Trade was the worst since February 3, and there's really nothing in the fundamentals which will change this for wheat or wheat farmers; or wheat investors for that matter, as couple that with strong wheat inventories around the world and there's little out there that could change this situation.
Farmers need to grow something else if they want to generate profits, not follow the herd the year after great prices were attained.
Wheat Futures and Wheat Inventories
Sunday, January 25, 2009
Commodities: Drought Devastating Argentine Wheat
Argentina, another country that relies heavily on commodities to succeed, has been devasted by a drought which has crushed their wheat market. It is also decimating their cattle which rely on the grain for food.
This is the worst year for lack of rain since 1971, said one Argentine meteorologist. As usual, competing national weather forecasts make the situation unpredictable, as they contradict whether rain will come or not, and whether the drought will continue.
While some farmers in the U.S. were eyeing the situation with interest, hoping to get their wheat out of storage and make some money on it. That may not be though, as even if Brazil buys some wheat from the U.S. because of Argentine companies not being able to provide it, the cancellation of Nigerian imports of American wheat makes it difficult to see any value to wheat farmers in the U.S. It'll keep prices from rising in any significant way. Wheat futures fell when the Nigerian cancellation became public.
A continuing steady diet of bad weather could make a dire situation for agriculture in Argentina even worse, as they're already projecting losses of $5 billion in the overall sector for this year alone.
Other commodities being decimated are soy, corn and beef. Many cattle are dying for lack of food, as farmers do everything they can to keep them alive. Even if they succeed, breeding will be difficult because of lack of nutrition to the animals.
In many places the wheat storage bins are empty, and farmers have nothing but the cows to fight to keep alive.
The news out of Argentina is the wheat harvest could plunge by 44 percent for the 2008-2009 wheat season, while corn is projected to suffer a 27 percent drop, and soy, which is more resilient, is in the best shape in Argentina, looking for a 7 percent increase.
Because wheat in storage has been dwindling, and cattle dying of starvation, the government has temporarily suspended the minimum weight for slaughtering livestock so farmers can sell their livestock before they die.
On the assumption wheat from the U.S. may be imported by Brazil, prices increased some on Friday, but soy and corn prices were volatile, even though the numbers will fall significantly from earlier estimates from Argentina.
This news is grim for the country, as the entire agriculture sector is suffering, and so the nation. With wheat storage bins empty, as well as soy and corn underperforming, it's going to be a tough year for Argentina, as it struggles just to stay afloat.
While other commodities have been surging lately, many grains will struggle to maintain prices, especially wheat, as the dry weather in Argentina continues.
This is the worst year for lack of rain since 1971, said one Argentine meteorologist. As usual, competing national weather forecasts make the situation unpredictable, as they contradict whether rain will come or not, and whether the drought will continue.
While some farmers in the U.S. were eyeing the situation with interest, hoping to get their wheat out of storage and make some money on it. That may not be though, as even if Brazil buys some wheat from the U.S. because of Argentine companies not being able to provide it, the cancellation of Nigerian imports of American wheat makes it difficult to see any value to wheat farmers in the U.S. It'll keep prices from rising in any significant way. Wheat futures fell when the Nigerian cancellation became public.
A continuing steady diet of bad weather could make a dire situation for agriculture in Argentina even worse, as they're already projecting losses of $5 billion in the overall sector for this year alone.
Other commodities being decimated are soy, corn and beef. Many cattle are dying for lack of food, as farmers do everything they can to keep them alive. Even if they succeed, breeding will be difficult because of lack of nutrition to the animals.
In many places the wheat storage bins are empty, and farmers have nothing but the cows to fight to keep alive.
The news out of Argentina is the wheat harvest could plunge by 44 percent for the 2008-2009 wheat season, while corn is projected to suffer a 27 percent drop, and soy, which is more resilient, is in the best shape in Argentina, looking for a 7 percent increase.
Because wheat in storage has been dwindling, and cattle dying of starvation, the government has temporarily suspended the minimum weight for slaughtering livestock so farmers can sell their livestock before they die.
On the assumption wheat from the U.S. may be imported by Brazil, prices increased some on Friday, but soy and corn prices were volatile, even though the numbers will fall significantly from earlier estimates from Argentina.
This news is grim for the country, as the entire agriculture sector is suffering, and so the nation. With wheat storage bins empty, as well as soy and corn underperforming, it's going to be a tough year for Argentina, as it struggles just to stay afloat.
While other commodities have been surging lately, many grains will struggle to maintain prices, especially wheat, as the dry weather in Argentina continues.
Friday, December 26, 2008
DJ US Export Sales: Commodity Highlights - Dec 26
Kansas City, Dec 26, 2008 (Dow Jones Commodities News via Comtex) -- USDA Thursday released the following export highlights in its Export Sales report for week ended Dec 18.
Wheat: Net sales of 253,600 metric tons were down 3 percent from the previous week and 12 percent from the prior 4-week average. Increases reported for Mexico (58,600 MT), Egypt (57,800 MT), Taiwan (56,000 MT), Japan (53,700 MT), Guatemala (30,900 MT, including 30,200 MT switched from unknown destinations), Yemen (28,000 MT), and South Korea (23,800 MT), were partially offset by decreases for unknown destinations (50,800 MT) and Spain (40,000 MT). Exports of 290,900 MT--a marketing-year low--were down 30 percent from the previous week and 34 percent from the prior 4-week average. The primary destinations were Mexico (96,900 MT), Egypt (57,800 MT), Japan (46,500 MT), Guatemala (30,900 MT), Morocco (19,600 MT), and Colombia (15,400 MT).
Corn: Net sales of 551,400 MT were down 10 percent from the previous week and 6 percent from the prior 4-week average. Increases reported for Japan (263,900 MT), Taiwan (90,500 MT, including 79,000 MT switched from unknown destinations), Mexico (81,000 MT), Venezuela (80,000 MT), Guatemala (22,400 MT), and Syria (18,000 MT), were partially offset by decreases for South Korea (24,600 MT), Egypt (16,300 MT), unknown destinations (12,000 MT), and Colombia (5,800 MT). Exports of 831,300 MT were up 17 percent from the previous week and 7 percent from the prior 4-week average. The primary destinations were Japan (289,200 MT), Mexico (119,000 MT), Taiwan (117,200 MT), South Korea (114,300 MT), Colombia (69,100 MT), Canada (28,900 MT), and Egypt (24,100 MT).
Barley: There were no sales reported during the week. Exports of 5,600 MT were for Japan (4,900 MT) and Mexico (700 MT).
Sorghum: Net sales of 88,900 MT were for Mexico. Exports of 12,800 MT were for Mexico (12,700 MT) and Canada (100 MT).
Rice: Net sales of 23,300 MT were down 77 percent from the previous week and 71 percent from the prior 4-week average. Increases were reported for Venezuela (20,000 MT), Mexico (1,400 MT), Canada (1,200 MT), Jordan (600 MT), and the Bahamas (200 MT). Decreases were for Japan (600 MT). Exports of 61,800 MT were down 34 percent from the previous week and 5 percent from the prior 4-week average. The primary destinations were Costa Rica (33,000 MT), Mexico (16,500 MT), Canada (2,600 MT), Honduras (2,500 MT), South Korea (2,000 MT), Jordan (1,900 MT), and New Guinea (1,400 MT).
Soybeans: Net sales of 584,800 MT were down 35 percent from the previous week and 18 percent from the prior 4-week average. Increases reported for China (374,400 MT, including 167,000 MT switched from unknown destinations), the Netherlands (129,800 MT, including 120,000 MT switched from unknown destinations), Indonesia (114,500 MT), Egypt (60,000 MT), and Taiwan (59,600 MT, including 56,000 MT switched from China), were partially offset by decreases for unknown destinations (232,000 MT) and Morocco (23,800 MT). Net sales of 6,100 MT for 2009/10 delivery were for Japan. Exports of 951,500 MT were down 18 percent from the previous week and 13 percent from the prior 4-week average. The primary destinations were China (609,200 MT), the Netherlands (129,800 MT), Japan (57,000 MT), Mexico (39,900 MT), Morocco (31,200 MT), Israel (23,300 MT), and Taiwan (23,000 MT).
Soybean Cake and Meal: Net sales of 145,700 MT were up two and three-tenths times from the previous week and nearly two and two-fifths times from the prior 4-week average. Increases were reported for Mexico (33,300 MT), Venezuela (23,000 MT), Turkey (16,700 MT, including 15,000 MT switched from unknown destinations), Canada (16,200 MT), the Dominican Republic (15,700 MT), and Guatemala (11,900 MT). Exports of 229,700 MT were up 77 percent from the previous week and 44 percent from the prior 4-week average. The primary destinations were Venezuela (56,200 MT), Mexico (43,600 MT), Ecuador (27,400 MT), Canada (23,300 MT), Turkey (16,700 MT), and the Dominican Republic (16,300 MT).
Soybean Oil: Net sales of 5,400 MT were mainly for Canada (2,200 MT), Mexico (2,000 MT), Nicaragua (600 MT), the Dominican Republic (300 MT), and Guatemala (200 MT). Decreases were for Saudi Arabia (100 MT). Exports of 7,400 MT were up 23 percent from the previous week, but down 43 percent from the prior 4-week average. The destinations were primarily Mexico (2,600 MT), Costa Rica (1,500 MT), El Salvador (800 MT), Canada (700 MT), Barbados (700 MT), and Nicaragua (600 MT).
Cotton: Net Upland sales of 118,900 running bales were up 52 percent from the previous week and 7 percent from the prior 4-week average. Increases reported for Turkey (26,700 RB), Morocco (17,100 RB), Indonesia (16,400 RB), China (13,700 RB), Bangladesh (10,200 RB), and Malaysia (9,700 RB), were partially offset by decreases for Pakistan (7,700 RB), El Salvador (1,900 RB), and unknown destinations (1,800 RB). Net sales of 1,000 RB for delivery in 2009/10 were for South Korea. Exports of 210,700 RB were up 18 percent from the previous week, but down 1 percent from the prior 4-week average. The primary destinations were China (54,600 RB), Turkey (47,700 RB), Vietnam (29,500 RB), Mexico (12,600 RB), and Thailand (10,400 RB). Net American Pima Sales of 100 RB resulted as increases for Indonesia (600 RB), Thailand (400 RB), and Japan (400 RB), were partially offset by decreases for China (1,300 RB). Exports of 400 RB were for India.
Hides and Skins: Net sales of 689,400 pieces were up 7 percent from the previous week and 24 percent from the prior 4-week average. Whole cattle hide sales of 719,500 pieces were primarily for China (352,900 pieces), South Korea (142,700 pieces), Taiwan (118,700 pieces), Mexico (30,300 pieces), and Japan (25,500 pieces). Exports of 455,700 pieces were up 12 percent from the previous week and 14 percent from the prior 4-week average. Whole cattle hide exports of 443,400 pieces were primarily to China (224,300 pieces), South Korea (77,900 pieces), Thailand (39,500 pieces), Taiwan (34,800 pieces), and Mexico (27,100 pieces).
Net sales of 81,100 wet blues were down 9 percent from the previous week and 46 percent from the prior 4-week average. Increases were mainly for Thailand (52,300 unsplit), Taiwan (28,400 unsplit), China (4,800 unsplit), Mexico (2,400 grain splits), and Hong Kong (1,800 unsplit). Exports of 78,800 hides were up 3 percent from the previous week and 17 percent from the prior 4-week average. The primary destinations were China (35,600 unsplit), Hong Kong (16,600 unsplit), Italy (14,700 unsplit), and Mexico (4,900 grain splits). Net sales of splits totaling 419,200 pounds were primarily for China (405,000 pounds). Exports of 128,200 pounds were down 63 percent from the previous week and 65 percent from the prior 4-week average. The destination was China.
Beef: Net sales reductions of 6,200 MT resulted as increases for Mexico (1,900 MT), Canada (800 MT), and the Philippines (100 MT), were more than offset by decreases for South Korea (7,100 MT), Vietnam (900 MT), Japan (600 MT), and Russia (400 MT). Net Sales of 13,000 MT for delivery in 2009 were primarily for South Korea (6,400 MT, switched from marketing year 2008), Vietnam (2,400 MT, including 900 MT switched from marketing year 2008), Mexico (2,400 MT), and Japan (1,100 MT, including 400 MT switched from marketing year 2008). Exports of 8,200 MT were primarily to Mexico (3,900 MT), Canada (1,500 MT), Japan (800 MT), South Korea (600 MT), and Taiwan (400 MT).
December 26, 2008
FOREIGN AGRICULTURAL SERVICE/USDA
SUMMARY OF EXPORT TRANSACTIONS
Reported Under the Daily Reporting System
For Period Ending December 18, 2008
Commodity Destination Quantity (MT) Marketing
SOYBEANS 1/ CHINA 116,000 2008/09
1/ Export sales.
-By Valena Henderson; Dow Jones Newswires; 913-322-5171;
csstat@dowjones.com
Dow Jones Newswires
12-26-08 0832ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Wheat: Net sales of 253,600 metric tons were down 3 percent from the previous week and 12 percent from the prior 4-week average. Increases reported for Mexico (58,600 MT), Egypt (57,800 MT), Taiwan (56,000 MT), Japan (53,700 MT), Guatemala (30,900 MT, including 30,200 MT switched from unknown destinations), Yemen (28,000 MT), and South Korea (23,800 MT), were partially offset by decreases for unknown destinations (50,800 MT) and Spain (40,000 MT). Exports of 290,900 MT--a marketing-year low--were down 30 percent from the previous week and 34 percent from the prior 4-week average. The primary destinations were Mexico (96,900 MT), Egypt (57,800 MT), Japan (46,500 MT), Guatemala (30,900 MT), Morocco (19,600 MT), and Colombia (15,400 MT).
Corn: Net sales of 551,400 MT were down 10 percent from the previous week and 6 percent from the prior 4-week average. Increases reported for Japan (263,900 MT), Taiwan (90,500 MT, including 79,000 MT switched from unknown destinations), Mexico (81,000 MT), Venezuela (80,000 MT), Guatemala (22,400 MT), and Syria (18,000 MT), were partially offset by decreases for South Korea (24,600 MT), Egypt (16,300 MT), unknown destinations (12,000 MT), and Colombia (5,800 MT). Exports of 831,300 MT were up 17 percent from the previous week and 7 percent from the prior 4-week average. The primary destinations were Japan (289,200 MT), Mexico (119,000 MT), Taiwan (117,200 MT), South Korea (114,300 MT), Colombia (69,100 MT), Canada (28,900 MT), and Egypt (24,100 MT).
Barley: There were no sales reported during the week. Exports of 5,600 MT were for Japan (4,900 MT) and Mexico (700 MT).
Sorghum: Net sales of 88,900 MT were for Mexico. Exports of 12,800 MT were for Mexico (12,700 MT) and Canada (100 MT).
Rice: Net sales of 23,300 MT were down 77 percent from the previous week and 71 percent from the prior 4-week average. Increases were reported for Venezuela (20,000 MT), Mexico (1,400 MT), Canada (1,200 MT), Jordan (600 MT), and the Bahamas (200 MT). Decreases were for Japan (600 MT). Exports of 61,800 MT were down 34 percent from the previous week and 5 percent from the prior 4-week average. The primary destinations were Costa Rica (33,000 MT), Mexico (16,500 MT), Canada (2,600 MT), Honduras (2,500 MT), South Korea (2,000 MT), Jordan (1,900 MT), and New Guinea (1,400 MT).
Soybeans: Net sales of 584,800 MT were down 35 percent from the previous week and 18 percent from the prior 4-week average. Increases reported for China (374,400 MT, including 167,000 MT switched from unknown destinations), the Netherlands (129,800 MT, including 120,000 MT switched from unknown destinations), Indonesia (114,500 MT), Egypt (60,000 MT), and Taiwan (59,600 MT, including 56,000 MT switched from China), were partially offset by decreases for unknown destinations (232,000 MT) and Morocco (23,800 MT). Net sales of 6,100 MT for 2009/10 delivery were for Japan. Exports of 951,500 MT were down 18 percent from the previous week and 13 percent from the prior 4-week average. The primary destinations were China (609,200 MT), the Netherlands (129,800 MT), Japan (57,000 MT), Mexico (39,900 MT), Morocco (31,200 MT), Israel (23,300 MT), and Taiwan (23,000 MT).
Soybean Cake and Meal: Net sales of 145,700 MT were up two and three-tenths times from the previous week and nearly two and two-fifths times from the prior 4-week average. Increases were reported for Mexico (33,300 MT), Venezuela (23,000 MT), Turkey (16,700 MT, including 15,000 MT switched from unknown destinations), Canada (16,200 MT), the Dominican Republic (15,700 MT), and Guatemala (11,900 MT). Exports of 229,700 MT were up 77 percent from the previous week and 44 percent from the prior 4-week average. The primary destinations were Venezuela (56,200 MT), Mexico (43,600 MT), Ecuador (27,400 MT), Canada (23,300 MT), Turkey (16,700 MT), and the Dominican Republic (16,300 MT).
Soybean Oil: Net sales of 5,400 MT were mainly for Canada (2,200 MT), Mexico (2,000 MT), Nicaragua (600 MT), the Dominican Republic (300 MT), and Guatemala (200 MT). Decreases were for Saudi Arabia (100 MT). Exports of 7,400 MT were up 23 percent from the previous week, but down 43 percent from the prior 4-week average. The destinations were primarily Mexico (2,600 MT), Costa Rica (1,500 MT), El Salvador (800 MT), Canada (700 MT), Barbados (700 MT), and Nicaragua (600 MT).
Cotton: Net Upland sales of 118,900 running bales were up 52 percent from the previous week and 7 percent from the prior 4-week average. Increases reported for Turkey (26,700 RB), Morocco (17,100 RB), Indonesia (16,400 RB), China (13,700 RB), Bangladesh (10,200 RB), and Malaysia (9,700 RB), were partially offset by decreases for Pakistan (7,700 RB), El Salvador (1,900 RB), and unknown destinations (1,800 RB). Net sales of 1,000 RB for delivery in 2009/10 were for South Korea. Exports of 210,700 RB were up 18 percent from the previous week, but down 1 percent from the prior 4-week average. The primary destinations were China (54,600 RB), Turkey (47,700 RB), Vietnam (29,500 RB), Mexico (12,600 RB), and Thailand (10,400 RB). Net American Pima Sales of 100 RB resulted as increases for Indonesia (600 RB), Thailand (400 RB), and Japan (400 RB), were partially offset by decreases for China (1,300 RB). Exports of 400 RB were for India.
Hides and Skins: Net sales of 689,400 pieces were up 7 percent from the previous week and 24 percent from the prior 4-week average. Whole cattle hide sales of 719,500 pieces were primarily for China (352,900 pieces), South Korea (142,700 pieces), Taiwan (118,700 pieces), Mexico (30,300 pieces), and Japan (25,500 pieces). Exports of 455,700 pieces were up 12 percent from the previous week and 14 percent from the prior 4-week average. Whole cattle hide exports of 443,400 pieces were primarily to China (224,300 pieces), South Korea (77,900 pieces), Thailand (39,500 pieces), Taiwan (34,800 pieces), and Mexico (27,100 pieces).
Net sales of 81,100 wet blues were down 9 percent from the previous week and 46 percent from the prior 4-week average. Increases were mainly for Thailand (52,300 unsplit), Taiwan (28,400 unsplit), China (4,800 unsplit), Mexico (2,400 grain splits), and Hong Kong (1,800 unsplit). Exports of 78,800 hides were up 3 percent from the previous week and 17 percent from the prior 4-week average. The primary destinations were China (35,600 unsplit), Hong Kong (16,600 unsplit), Italy (14,700 unsplit), and Mexico (4,900 grain splits). Net sales of splits totaling 419,200 pounds were primarily for China (405,000 pounds). Exports of 128,200 pounds were down 63 percent from the previous week and 65 percent from the prior 4-week average. The destination was China.
Beef: Net sales reductions of 6,200 MT resulted as increases for Mexico (1,900 MT), Canada (800 MT), and the Philippines (100 MT), were more than offset by decreases for South Korea (7,100 MT), Vietnam (900 MT), Japan (600 MT), and Russia (400 MT). Net Sales of 13,000 MT for delivery in 2009 were primarily for South Korea (6,400 MT, switched from marketing year 2008), Vietnam (2,400 MT, including 900 MT switched from marketing year 2008), Mexico (2,400 MT), and Japan (1,100 MT, including 400 MT switched from marketing year 2008). Exports of 8,200 MT were primarily to Mexico (3,900 MT), Canada (1,500 MT), Japan (800 MT), South Korea (600 MT), and Taiwan (400 MT).
December 26, 2008
FOREIGN AGRICULTURAL SERVICE/USDA
SUMMARY OF EXPORT TRANSACTIONS
Reported Under the Daily Reporting System
For Period Ending December 18, 2008
Commodity Destination Quantity (MT) Marketing
SOYBEANS 1/ CHINA 116,000 2008/09
1/ Export sales.
-By Valena Henderson; Dow Jones Newswires; 913-322-5171;
csstat@dowjones.com
Dow Jones Newswires
12-26-08 0832ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Wednesday, November 5, 2008
Commodities: Wheat Prices Drop Three-week Low
Wheat prices fall as commodity grain production increases
Wheat for December delivery dropped to $5.372 a bushel today on the Chicago Board of Trade, as global production has increased significantly, and India announced it would be offering 2 million tons of wheat to its neighbors, putting more downward pressure on the worldwide market. That's the lowest price level in three weeks.
The U.S. Department of Agriculture report on export sales data is expected to confirm these facts, and wheat could fall even more.
Wheat exports for the week ending October 30 are down a huge 40 percent from the week ending October 23, falling to 13.2 million bushels.
Global wheat production is projected to grow 12 percent through June to 683 million metric tons or 25.1 billion bushels.
A little hope has emerged as dry weather in Argentina may help keep wheat prices from falling too much.
But even with some of the drought conditions in China putting a little pressure on wheat commodity prices and wheat futures, it won't be enough to push wheat prices any higher as there was so much wheat produced and on the market this year, that even dry weather and drought conditions hasn't been enough to push commodity grain prices up, including corn futures, soybean futures, and wheat futures.
Commodity traders will have to look at some of the base metal futures and the oil contango for not only a haven for their money, but a place to make some money in the commodity and overall market in 2009.
Wheat for December delivery dropped to $5.372 a bushel today on the Chicago Board of Trade, as global production has increased significantly, and India announced it would be offering 2 million tons of wheat to its neighbors, putting more downward pressure on the worldwide market. That's the lowest price level in three weeks.
The U.S. Department of Agriculture report on export sales data is expected to confirm these facts, and wheat could fall even more.
Wheat exports for the week ending October 30 are down a huge 40 percent from the week ending October 23, falling to 13.2 million bushels.
Global wheat production is projected to grow 12 percent through June to 683 million metric tons or 25.1 billion bushels.
A little hope has emerged as dry weather in Argentina may help keep wheat prices from falling too much.
But even with some of the drought conditions in China putting a little pressure on wheat commodity prices and wheat futures, it won't be enough to push wheat prices any higher as there was so much wheat produced and on the market this year, that even dry weather and drought conditions hasn't been enough to push commodity grain prices up, including corn futures, soybean futures, and wheat futures.
Commodity traders will have to look at some of the base metal futures and the oil contango for not only a haven for their money, but a place to make some money in the commodity and overall market in 2009.
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