Weekend roundup for Wheat
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China raises prices paid to rice and wheat farmers
China said Friday that it would pay farmers more for rice and wheat, in a move aimed at raising output and cooling surging inflation that threatens to fuel unrest ahead of the Olympic Games.
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Wheat, oils & pulses likely to get cheaper in a global village
For India, the crash in global commodity prices comes as an answer to a prayer. Import of wheat, cooking oil and pulses are now likely to be cheaper as speculators and large funds exit positions in New York and Chicago over the last fortnight.
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S.Africa maize, wheat fall on harvest reports
South Africa's benchmark maize and wheat futures prices eased on Friday after reports pointed to plentiful crop supplies locally and internationally.
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Wheat growers concerned about new future and no protection
Farmers have told this week's Senate Inquiry, into changes to the wheat export system, that they won't have enough protection.
Grower groups from New South Wales, Victoria and Queensland have told the inquiry that, in years of a large harvest ,AWB used to buy all the wheat in its national pool.
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US Wheat Review: Closes Lower On Positioning Ahead Of USDA
U.S. wheat futures stumbled Friday as traders evened up positions ahead of the release of key U.S. Department of Agriculture reports, analysts said.
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Arkansas Flooding Drowns Fields, Futures
Empty grain elevators surrounded by a swollen White River await a harvest that may never come as floodwaters drown wheat already planted this spring.
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India sees 15 mln tonnes domestic wheat buys in 2008
India has bought 35,000 tonnes of new season wheat from farmers up to March 24 and is confident of scaling purchases up to at least 15 million tonnes in 2008, a senior government official said on Wednesday.
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Friday, March 28, 2008
Thursday, March 27, 2008
Effective Date for Price Limit Rules on the Kansas City Board of Trace Wheat is March 28, 2008
On Friday, March 28, it needs to be remembered that the Kansas City Board of Trade has been given approval by the Commodity Futures Trading Commission (CFTC) to change the daily price limits for hard red winter wheat options and futures.
Since it's the effective business date, it entails the evening session on Thursday, March 27, 2008.
The press release said:
"The initial daily price limit for wheat remains at 60 cents per bushel and will increase by 50 percent the following trading session when the price of two or more futures contract months within the first five listed non-spot contract months, or the final contract month of a crop year, closes at limit bid or limit offer. Price limits can expand two consecutive times: to a 90 cent per bushel limit and then to a maximum $1.35 per bushel limit.
"Daily price limits will step back to their prior levels when no futures contract month closes at limit bid or limit offer that day. If price limits are $1.35 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 90 cents per bushel the next business day. If price limits are 90 cents per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 60 cents per bushel the next business day. The CME Group is adopting the same price limits policy for its wheat contracts.
"Following the expanded price limits effective trade date February 11, market users asked for additional changes. Market users wanted to see: price limit provisions that expand based on the activity of the front months where the majority of open interest resides, a maximum amount that price limits can expand to, and provisions that allow price limits to contract at the same rate that they expand. These changes address all three of these concerns.
"Options pricing is subject to the same daily price limits as the underlying futures contract."
Monday, March 24, 2008
How the Wheat Market Performed on 3-24-2008
For May Wheat, it climbed by 32 1/2 to finish at 1020, finishing off its high of 42 1/4, but up by 32 1/2 from its low. July Wheat finished a little lower, ending at 1018 1/2, which was 36 down from its high, and up 45 from its low.
Traders on the floor said weather was one of the major factors today, as weather in the west and southwest continues to be dry in the hard red wheat areas, while wet weather persists in the south central and eastern soft red wheat areas.
With wheat having supply problems over the last year, Egypt announced via their agriculture minister that they were planing 3.2 million acres of wheat this year, the most they've planted in a decade.
Traders on the floor said weather was one of the major factors today, as weather in the west and southwest continues to be dry in the hard red wheat areas, while wet weather persists in the south central and eastern soft red wheat areas.
With wheat having supply problems over the last year, Egypt announced via their agriculture minister that they were planing 3.2 million acres of wheat this year, the most they've planted in a decade.
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.
Thursday, March 20, 2008
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I use outside ad companies to display ads on this blog. These ads may contain cookies and are collected by the advertising companies and I do not have access to this information. I work with the following advertising companies: Google Adsense.
If you would like more information about this practice and to know your choices about not having this information used by these companies, you can visit Google's Advertising and Privacy page.If you wish to opt out of Advertising companies tracking and tailoring advertisements to your surfing patterns you may do so at Network Advertising Initiative.Google uses the Doubleclick DART cookie to serve ads across it's Adsense network and you can get further information regarding the DART cookie at Doubleclick as well as opt out options at Google's Privacy Center
I respect your privacy and I am committed to safeguarding your privacy while online at this site wheatwise.blogspot.com. The following discloses how I gather and disseminate information for this Blog.
RSS Feeds and Email Updates
If a user wishes to subscribe to my RSS Feeds or Email Updates (powered by Feedburner), I ask for contact information such as name and email address. Users may opt-out of these communications at any time. Your personal information will never be sold or given to a third party.
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Like most blogging platforms I use log files, in my case Statcounter. This stores information such as internet protocol (IP) addresses, browser type, internet service provider (ISP), referring, exit and visited pages, platform used, date/time stamp, track user’s movement in the whole, and gather broad demographic information for aggregate use. IP addresses etc. are not linked to personally identifiable information.
Cookies
A cookie is a piece of data stored on the user’s computer tied to information about the user. This blog doesn't use cookies.
Links
This Blog contains links to other sites. Consider that I am not responsible for the privacy practices of these other sites. I suggest my users to be aware of this when they leave this blog and to read the privacy statements of each and every site that collects personally identifiable information. This privacy statement applies solely to information collected by this Blog.
Advertisers
I use outside ad companies to display ads on this blog. These ads may contain cookies and are collected by the advertising companies and I do not have access to this information. I work with the following advertising companies: Google Adsense.
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