Wheat Prices Surge to a 13-Month High

Filed under: Forecasts, Rumors, Market Matters, Economic Data, Commodities

This a story about rumor and weather. Wheat prices have skyrocketed to within 16 cents of their 2009 high, closing at .61 per bushel. The 2009 high was .77. Prices have surged 56% from their June lows.

You are no doubt asking: “Why such a big jump in prices?” The key word is drought, specifically the drought in the major growing areas of Russia, Ukraine and elsewhere in the Black Sea area. The drought is so bad that rumors are flying that Russia will limit wheat exports, driving purchasers to the U.S. According to Macquarie Group, parts of Europe also have been hit with drought, and Canada had excessive rain at planting time.

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Wheat Prices Surge to a 13-Month High originally appeared on BloggingStocks on Sun, 01 Aug 2010 11:40:00 EST. Please see our terms for use of feeds.

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Russia – Wheat – Canada – Ukraine – United States
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