US wheat contract reaches record
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People line up to buy wheat flour at a store in Karachi, Pakistan. Bloomberg News |
US high-protein spring wheat traded on the Minneapolis Grain Exchange surged above $20 per bushel yesterday to set a record high for any US wheat contract, extending recent gains amid supply concerns.
MGE spring wheat for March delivery in electronic trading rose as high as $20.23 per bushel, up 98 cents or 5 percent from Friday's $19.25.
"The Minneapolis price broke through that significant level and Chicago prices are chasing the move," said Kenji Kobayashi, grains analyst at Kanetsu Asset Management.
"Wheat is at an unprecedented level, but further gains are expected as long as fears over shortages in spring wheat are there. The strength in Minneapolis will keep others buoyant."
The Chicago Board of Trade wheat futures soared about 4 percent as concerns about tight supply prompted active buying after big US gains on Friday.
As of 0201 GMT, the front-month March CBOT soybean contract was trading at $10.82 per bushel after rising as far as $10.91. It ended at $10.49 in Chicago on Friday.
The May wheat contract WK8 was at $10.96 after reaching an intraday high of $11.055. It ended at $10.64 on Friday.
US wheat stocks are projected to fall to the lowest levels in 60 years by the end of the 2007/08 marketing year on May 31, after shortfalls in several world wheat regions in 2007 steered export demand to the United States.
Shortages of high-protein spring wheat, the type traded in Minneapolis, are the most acute.
Agencies
(China Daily 02/26/2008 page16)
