Wheat extended a collapse and corn and soybeans also fell as traders speculated that a jump in energy costs caused by protests across North Africa and the Middle East will curb growth and demand for grains.
Riots already ousted leaders in Egypt, the world’s biggest wheat importer, and in Tunisia, and opposition groups have seized control of eastern cities in Libya. While wheat traded in Chicago dropped 11 percent in the past four sessions, crude oil jumped 13 percent on the New York Mercantile Exchange.
Grain prices surged last month as North African and Middle East nations bought more shipments to damp a surge in domestic prices that helped spark the protests from Morocco to Bahrain. Speculators including hedge funds last week cut their bets on higher wheat prices by 20 percent, U.S. Commodity Futures Trading Commission data show.
“Investors continue to exit grain positions in favor of energy and financial markets due to anxiety over political unrest in the Middle East and North Africa,” Jim Gerlach, president of A/C Trading Inc., said by phone from Fowler, Indiana. “The markets are focused on the negative impact that higher energy prices may have on the global economy and food demand.”
Full Story
Thursday, February 24, 2011
Drought Increases Chinese Wheat Demand
DROUGHT across five provinces responsible for more than half China's 100 million tonne wheat crop could trigger a major foray into global markets - including Australia - by a nation which prides itself on being largely self sufficient in wheat.
Shandong Province, which traditionally grows 20 per cent of China's wheat, is facing its worst drought in 200 years. In other areas the big dry is the worst in 60 years.
Chinese Government agency, Cofco, is understood to have already bought about 200,000 tonnes of feed wheat from Australia this year, while other grain purchases around the world have also begun.
Although a regular and significant importer of soybeans and some corn, China has been relatively self-sufficient in wheat for two decades, but now has about 6.75 million hectares of key wheat country in drought according to its Office of State Flood Control and Drought Relief.
The Chinese government is spending about $1 billion to boost emergency water supply and irrigation resources in drought areas.
Full Story
Shandong Province, which traditionally grows 20 per cent of China's wheat, is facing its worst drought in 200 years. In other areas the big dry is the worst in 60 years.
Chinese Government agency, Cofco, is understood to have already bought about 200,000 tonnes of feed wheat from Australia this year, while other grain purchases around the world have also begun.
Although a regular and significant importer of soybeans and some corn, China has been relatively self-sufficient in wheat for two decades, but now has about 6.75 million hectares of key wheat country in drought according to its Office of State Flood Control and Drought Relief.
The Chinese government is spending about $1 billion to boost emergency water supply and irrigation resources in drought areas.
Full Story
Subscribe to:
Posts (Atom)
