Wheat fell the most in two months as the cost of the commodity may slow demand for U.S. supplies. Corn prices also dropped.
Wheat has soared 70 percent in the past year as bad weather damaged crops in Canada, Australia and Russia. U.S. export sales fell 13 percent in the week ended January 20 from a week earlier, Department of Agriculture data revealed. Speculators have cut back on bets on rising prices in each of the past three weeks, U.S. government data reveal.
Wheat futures for March delivery declined 20.5 cents, or 2.4 percent, to $8.2575 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline since Nov. 16. The wheat price jumped 0.2 percent this week.
Prices also dropped on concerns that riots in Egypt, the world’s biggest buyer, will slow down on purchases.
Corn futures for March delivery fell 6.75 cents, or 1 percent, to $6.445 a bushel in Chicago. The price declined 2 percent this week.
Soybeans for March delivery fell 1.5 cents, or 0.1 percent, to $13.98 a bushel. The most-active contract declined 1 percent this week.
Showing posts with label Corn. Show all posts
Showing posts with label Corn. Show all posts
Saturday, January 29, 2011
Monday, November 10, 2008
Where is Wheat Price Per Bushel Going in 2009
Wheat ending stocks for 2008-2009 are slightly higher than trade estimates of 594 million-bushel-average, as well as the 601 million-bushel average the USDA projected for October.
The overall global wheat production has risen, while some individual countries fluctuate. Argentina for example announced its production fell by 1 million metric tons to 11 million, while India has had such a good wheat harvest this year they're making two million tons of available for export.
Wheat supplies will also put competitive pressure on corn because of the large supply this year.
Because of the huge supply, there won't be much happening with wheat that will surprise anyone.
As far as prices, soft red winter wheat has "the most downside room; some of better classes can hold in a bit more strongly."
The global wheat market will continue to be bearish, even as drought conditions pressure certain countries like the Phillipines, Argentina and most recently China. Even with that pressure, the price for wheat per bushel in 2009 shouldn't be affected too much, and it shouldn't be counted on to push up wheat prices a bushel anytime soon.
There will be plenty of wheat for sale, and that will keep wheat prices per barrel down, as the huge wheat surplus this year, especially in the European Union and Black Sea region being major contributing factors. There has also been a huge wheat crop in Canada this year to add to the overall wheat picture.
Considering India wheat being so prolific this year as well, and you see how wheat prices per barrel in 2009 will struggle to rise, even when you take into account quality wheat. In these types of economic downturns, survival is more important than the protein content of wheat, and being able to afford the cost of food in general, and wheat in particular is the guiding factor behind where prices of wheat per barrel will lead to.
It's hard to tell how much wheat will be planted in 2009 as well, with fertilizer costs playing a big factor in the decision of whether to plant, and if wheat is planted, how much fertilizer can be used for the wheat and still be cost effective. Fertilizer prices have gone down some, but low wheat prices per barrel make it difficult to top dress wheat with nitrogen fertilizer and still be profitable in a meaningful way for those putting their wheat up for sale.
The most recent projections for wheat exports from the USDA stand at 210 million bushels, an extraordinary third less than 2008. And as of January 1, wheat sales have plunged by close to 40 percent, with only 158 million bushels sold in the U.S.
While there is some opportunity for wheat exports and wheat prices per barrel to rise in 2009, it will depend mostly on weather conditions for the U.S. wheat crop, along with the number of acres planted after a fairly poor year. The high protein sector may offer some opportunity for U.S. farmers, but wheat quality from other countries, and the above-mentioned factors will determine the price per bushel of wheat in 2009. There's no way of knowing at this time where all this will head, as weather is the key factor, and that of course has yet to be played out. Other countries have suffered quality wheat production, which could help wheat prices per bushel rise, but that will highly depend on the quality of wheat produced in the U.S., which again, will be determined by the weather conditions in the spring months of 2009.
The overall global wheat production has risen, while some individual countries fluctuate. Argentina for example announced its production fell by 1 million metric tons to 11 million, while India has had such a good wheat harvest this year they're making two million tons of available for export.
Wheat supplies will also put competitive pressure on corn because of the large supply this year.
Because of the huge supply, there won't be much happening with wheat that will surprise anyone.
As far as prices, soft red winter wheat has "the most downside room; some of better classes can hold in a bit more strongly."
The global wheat market will continue to be bearish, even as drought conditions pressure certain countries like the Phillipines, Argentina and most recently China. Even with that pressure, the price for wheat per bushel in 2009 shouldn't be affected too much, and it shouldn't be counted on to push up wheat prices a bushel anytime soon.
There will be plenty of wheat for sale, and that will keep wheat prices per barrel down, as the huge wheat surplus this year, especially in the European Union and Black Sea region being major contributing factors. There has also been a huge wheat crop in Canada this year to add to the overall wheat picture.
Considering India wheat being so prolific this year as well, and you see how wheat prices per barrel in 2009 will struggle to rise, even when you take into account quality wheat. In these types of economic downturns, survival is more important than the protein content of wheat, and being able to afford the cost of food in general, and wheat in particular is the guiding factor behind where prices of wheat per barrel will lead to.
It's hard to tell how much wheat will be planted in 2009 as well, with fertilizer costs playing a big factor in the decision of whether to plant, and if wheat is planted, how much fertilizer can be used for the wheat and still be cost effective. Fertilizer prices have gone down some, but low wheat prices per barrel make it difficult to top dress wheat with nitrogen fertilizer and still be profitable in a meaningful way for those putting their wheat up for sale.
The most recent projections for wheat exports from the USDA stand at 210 million bushels, an extraordinary third less than 2008. And as of January 1, wheat sales have plunged by close to 40 percent, with only 158 million bushels sold in the U.S.
While there is some opportunity for wheat exports and wheat prices per barrel to rise in 2009, it will depend mostly on weather conditions for the U.S. wheat crop, along with the number of acres planted after a fairly poor year. The high protein sector may offer some opportunity for U.S. farmers, but wheat quality from other countries, and the above-mentioned factors will determine the price per bushel of wheat in 2009. There's no way of knowing at this time where all this will head, as weather is the key factor, and that of course has yet to be played out. Other countries have suffered quality wheat production, which could help wheat prices per bushel rise, but that will highly depend on the quality of wheat produced in the U.S., which again, will be determined by the weather conditions in the spring months of 2009.
Monday, March 24, 2008
U.S. Government Needs to Look in Mirror to find Source of Food Price Increases
With wheat and corn being two of the primary food sources in the world, the U.S. government needs to only look in the mirror to find out where the origination of these huge price increases are coming from.
Why? The totally ignorant idea to mandate ethanol increases is proving to be a destructive force in food prices around the world.
The reason the wheat prices are increasing, is the growing price of corn, as a result of the artificially induced ethanol market, has resulted in less wheat being grown, which has then caused the prices to rise.
Creating the artificial and basically worthless ethanol market has already caused huge disruptions in the market, and we're only getting started.
The Bush administration mandated an increase of six times current ethanol use by 2022, which is skewering the food markets in a big way.
As usual, when governments enter into areas they have no idea what they're doing, they end up causing disasters, as they aren't able to take into account the unintended consequences which always arise from these types of initiatives.
To exacerbate all this, wheat harvests from around the world have been poor, as weather slowed the harvests in parts of China, Europe, Australia, and a number of other Asian countries. This created a demand for American grown wheat which was unexpected; causing prices to rise again.
We need to drop the ethanol mandate, which is starting to be questioned by an increasing number of agriculture experts and scientists as to its real value; similar to global warming being discovered recently as built upon faulty computer models, and in reality the weather worldwide has been declining in temperature since 1998.
Why? The totally ignorant idea to mandate ethanol increases is proving to be a destructive force in food prices around the world.
The reason the wheat prices are increasing, is the growing price of corn, as a result of the artificially induced ethanol market, has resulted in less wheat being grown, which has then caused the prices to rise.
Creating the artificial and basically worthless ethanol market has already caused huge disruptions in the market, and we're only getting started.
The Bush administration mandated an increase of six times current ethanol use by 2022, which is skewering the food markets in a big way.
As usual, when governments enter into areas they have no idea what they're doing, they end up causing disasters, as they aren't able to take into account the unintended consequences which always arise from these types of initiatives.
To exacerbate all this, wheat harvests from around the world have been poor, as weather slowed the harvests in parts of China, Europe, Australia, and a number of other Asian countries. This created a demand for American grown wheat which was unexpected; causing prices to rise again.
We need to drop the ethanol mandate, which is starting to be questioned by an increasing number of agriculture experts and scientists as to its real value; similar to global warming being discovered recently as built upon faulty computer models, and in reality the weather worldwide has been declining in temperature since 1998.
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