Wednesday, September 5, 2007

Wheat Surges to Record on Increased Demand, Supply Concern

From Bloomberg:
Wheat rose to a record, increasing by the daily trading limit for a second day, as importers raced to lock in supplies and concern mounted that Australia's harvest may be smaller than expected.

India, the world's second-biggest consumer of the grain, South Korea and Taiwan all bought wheat this week, and Egypt and Japan plan to purchase the grain. Output in Australia may be 16 million metric tons, 29 percent below a federal government forecast, a state minister said today.

Wheat futures for December delivery rose as much as 30 cents, the maximum allowed by the exchange, to $8.355 a bushel in after-hours electronic trading on the Chicago Board of Trade. The contract, which has risen more than a third in the past two months, was still 3.7 percent higher at 10:38 a.m. in London....MORE