Higher than normal level of toxins are slashing the income of some farmers in Ohio.
According to representatives of the Ohio State University Extension Service, vomitoxin levels are the worst in seven to ten years in some areas of the state, especially areas where it's cooler and wet.
A wet May in particular produced conditions for the fungus to thrive.
The high levels of toxins limit the use of wheat for people, and also in livestock, especially pigs, which could cause a lot of problems in them.
Showing posts with label Wheat. Show all posts
Showing posts with label Wheat. Show all posts
Saturday, July 3, 2010
Friday, June 11, 2010
USDA Confirms Too Much Wheat
The wheat ending stocks are projected to be at 991 million bushels, according to the latest USDA figures, down a little from May, but irrelevant because of the enormous supply.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Wednesday, July 15, 2009
Monsanto Looking to wheat
Monsanto Looking to wheat to drive share prices up
Looking for more ways to increase their share price, Monsanto is looking to wheat as a significant means of doing that, and recent aquisition of WestBred LLC is the first significant step in that direction, although it could take a decade before the investment pays off.
Knowing it needs a way to expand market share in wheat, Monsanto a Monsanto analyst, citing expectations that the company's $45 million acquisition of WestBred LLC won't add to earnings until 2016, and will add less than a dime a share by 2025.
Privately held WestBred, with offices in Montana, specializes in wheat germplasm, the genetic material of a seed.
Monsanto said about the investment that it will strengthen the future growth of Monsanto's seeds and traits platform; and allow farmers to benefit from the company's experience in drought-, disease- and pest-tolerance innovations.
This action by Monsanto, the world's biggest provider of seeds, signifies the company's re-entry to the wheat market, but will only increase earnings several years down the road at best.
Assuming Monsanto has a 20 percent share of the certified seed market by 2025, estimates are wheat could only add between 7 cents and 9 cents a share to earnings a share by 2025.
"Clearly, Monsanto needs to find ways to drive significant market share gains, wheat platform should not be accretive to earnings until 2016 or later."
Managing expectations, Monsanto is calling the acquisition a long-term investment that won't add to earnings until the middle or latter part of the next decade.
Monsanto Looking to wheat to drive share prices up
Looking for more ways to increase their share price, Monsanto is looking to wheat as a significant means of doing that, and recent aquisition of WestBred LLC is the first significant step in that direction, although it could take a decade before the investment pays off.
Knowing it needs a way to expand market share in wheat, Monsanto a Monsanto analyst, citing expectations that the company's $45 million acquisition of WestBred LLC won't add to earnings until 2016, and will add less than a dime a share by 2025.
Privately held WestBred, with offices in Montana, specializes in wheat germplasm, the genetic material of a seed.
Monsanto said about the investment that it will strengthen the future growth of Monsanto's seeds and traits platform; and allow farmers to benefit from the company's experience in drought-, disease- and pest-tolerance innovations.
This action by Monsanto, the world's biggest provider of seeds, signifies the company's re-entry to the wheat market, but will only increase earnings several years down the road at best.
Assuming Monsanto has a 20 percent share of the certified seed market by 2025, estimates are wheat could only add between 7 cents and 9 cents a share to earnings a share by 2025.
"Clearly, Monsanto needs to find ways to drive significant market share gains, wheat platform should not be accretive to earnings until 2016 or later."
Managing expectations, Monsanto is calling the acquisition a long-term investment that won't add to earnings until the middle or latter part of the next decade.
Monsanto Looking to wheat to drive share prices up
Sunday, January 25, 2009
Wheat: Argentina Wheat Market Crumbling
Although a number of crops are failing in Argentina, including corn and soy, wheat is also participating in the destructive drought that is crushing the entire agriculture sector of Argentina.
The commodity grain sector hasn't moved with the metals market, as demand for everything is down, even though people still need to eat, as well as their livestock.
This is particularly difficult for Argentina, who is one of the top exporters of grains in the world, and so depend on so much on it for the welfare of the country.
At this time things are so bad that farmers have given up trying to salvage their wheat crop, and instead are focusing on saving their cattle. Even if the cattle are saved, they will be difficult to breed because of the lack of food for them.
According to farmers in Argentina, wheat fields are as dried as they can be, with little hope of salvaging a wheat crop, as there is little to put in storage.
Unfortunately for everyone involved, the wheat planting, wheat yield and wheat harvest around the world has been huge, and so the drought in Argentina is hurting them without benefiting anyone else.
Even though farmers in the U.S. were hoping to get some of the trade usually done by Argentina with Brazil, it looks like it won't have much impact on wheat exports from the U.S., and so Argentines will be the ones to suffer.
So in spite of this, wheat futures aren't moving much because of this, although there was a slight move upward recently based on wheat news from the country. But it's not sustainable.
Weather predictions in the country are, as usual, contradictory, and so some say the drought will end with rain coming, and others say it won't amount to much. Either way, wheat farmers in Argentina, and its people, are in for a long struggle as grain prices continue to fall.
For Argentina, this is the worst year for drought and lack of rain since 1971, and even if there is a major change in the weather patterns, the wheat harvest will be way down, as wheat production grinds to a halt.
Along with the wheat crop, other crops suffering are corn and soy, with silos there to store the crops are in many cases empty or half full.
Even though soy is down, it is still on the positive side, and is projected to increase in production by 7 percent. The corn harvest will fall by about 27 percent, and wheat production will be hit the most from the poor growing season projected to plunge by 44 percent over the 2008-2009 harvesting season.
Grains are so scarce in the country, that the Argentine government is has even lowered the minimum weight requirements to slaughter cattle so the farmers can make some money off them before they are worthless or die.
It'll take some time to recover from this wheat disaster, as Argentina will suffer probably for a couple years or more trying to come back from this natural disaster.
In a normal year this would have boosted wheat prices tremendously, but the wheat harvest has been so plentiful globally, that it will easily absorb the losses without making a difference in wheat prices.
The commodity grain sector hasn't moved with the metals market, as demand for everything is down, even though people still need to eat, as well as their livestock.
This is particularly difficult for Argentina, who is one of the top exporters of grains in the world, and so depend on so much on it for the welfare of the country.
At this time things are so bad that farmers have given up trying to salvage their wheat crop, and instead are focusing on saving their cattle. Even if the cattle are saved, they will be difficult to breed because of the lack of food for them.
According to farmers in Argentina, wheat fields are as dried as they can be, with little hope of salvaging a wheat crop, as there is little to put in storage.
Unfortunately for everyone involved, the wheat planting, wheat yield and wheat harvest around the world has been huge, and so the drought in Argentina is hurting them without benefiting anyone else.
Even though farmers in the U.S. were hoping to get some of the trade usually done by Argentina with Brazil, it looks like it won't have much impact on wheat exports from the U.S., and so Argentines will be the ones to suffer.
So in spite of this, wheat futures aren't moving much because of this, although there was a slight move upward recently based on wheat news from the country. But it's not sustainable.
Weather predictions in the country are, as usual, contradictory, and so some say the drought will end with rain coming, and others say it won't amount to much. Either way, wheat farmers in Argentina, and its people, are in for a long struggle as grain prices continue to fall.
For Argentina, this is the worst year for drought and lack of rain since 1971, and even if there is a major change in the weather patterns, the wheat harvest will be way down, as wheat production grinds to a halt.
Along with the wheat crop, other crops suffering are corn and soy, with silos there to store the crops are in many cases empty or half full.
Even though soy is down, it is still on the positive side, and is projected to increase in production by 7 percent. The corn harvest will fall by about 27 percent, and wheat production will be hit the most from the poor growing season projected to plunge by 44 percent over the 2008-2009 harvesting season.
Grains are so scarce in the country, that the Argentine government is has even lowered the minimum weight requirements to slaughter cattle so the farmers can make some money off them before they are worthless or die.
It'll take some time to recover from this wheat disaster, as Argentina will suffer probably for a couple years or more trying to come back from this natural disaster.
In a normal year this would have boosted wheat prices tremendously, but the wheat harvest has been so plentiful globally, that it will easily absorb the losses without making a difference in wheat prices.
Wednesday, October 8, 2008
New Gascoigne wheat Strain May Work Well in Dry Australian Climate
Australian farmers should have another arrow in their wheat quiver as a new variety named Gascoigne has been developed that has worked well in past trials.
According to CSIRO it will probably perform best in the south-east New South Wales area.
CSIRO wheat breeder Garry Rosewarne said:
"It topped two trial sites in a very dry environment, but we've also had this in trials in 2004 and 2005 when they were quite good years and it was also yielding very well then.
"It's also got quite a large seed size, so we think that's certainly an advantage, particularly in dry finishes where you might get a lot of screenings.
"And it seems to perform well against all of the three rusts; leaf rust, stripe rust and stem rust."
According to CSIRO it will probably perform best in the south-east New South Wales area.
CSIRO wheat breeder Garry Rosewarne said:
"It topped two trial sites in a very dry environment, but we've also had this in trials in 2004 and 2005 when they were quite good years and it was also yielding very well then.
"It's also got quite a large seed size, so we think that's certainly an advantage, particularly in dry finishes where you might get a lot of screenings.
"And it seems to perform well against all of the three rusts; leaf rust, stripe rust and stem rust."
Tuesday, October 7, 2008
US Wheat Plunges on Economic Fears and Pressure
Commodities continue to take a beating as the markets worldwide become under increasing pressure. Wheat suffered along with most others as they tumbled on all the exchanges.
Along with the economic conditions, other factors were the stronger U.S. dollar and the drop in price of soybeans and corn. A stronger U.S. dollar makes investments in commodities less attractive to foreign traders.
The outlook for 2008 through 2009 looks somewhat grim for wheat, as outside pressures of the global economy continue and the projected record wheat crop drives prices further down.
Along with U.S. wheat production, Canada is raising its wheat production forecast, as are many other countries.
Much of that is because of increased number of acres being planted in wheat as well as expected good weather conditions.
On the Chicago Board of Trade December wheat dropped by 45 cents to $5.95 1/4 a bushel for December. December wheat on the Kansas City Board of Trade fell 42 1/4 cents to $6.28 1/4 a bushel, while December wheat declined by 38 cents to $6.64 3/4 on the Minneapolis Grain Exchange.
Along with the economic conditions, other factors were the stronger U.S. dollar and the drop in price of soybeans and corn. A stronger U.S. dollar makes investments in commodities less attractive to foreign traders.
The outlook for 2008 through 2009 looks somewhat grim for wheat, as outside pressures of the global economy continue and the projected record wheat crop drives prices further down.
Along with U.S. wheat production, Canada is raising its wheat production forecast, as are many other countries.
Much of that is because of increased number of acres being planted in wheat as well as expected good weather conditions.
On the Chicago Board of Trade December wheat dropped by 45 cents to $5.95 1/4 a bushel for December. December wheat on the Kansas City Board of Trade fell 42 1/4 cents to $6.28 1/4 a bushel, while December wheat declined by 38 cents to $6.64 3/4 on the Minneapolis Grain Exchange.
Thursday, August 21, 2008
Wheat Climbs to Eight-week High On Weak Dollar, Surge in Crude Oil
Wheat enjoyed a comeback on Thursday, as it reached an eight-week high, as crude oil helped lift it up, along with a weakening U.S. dollar. Corn and soybean increases also helped push the commodity upwards.
On the CBOT, December wheat ended the session up 22 3/4 cents at $9.22 1/4 a bushel. December wheat at the Kansas City Board of Trade finished at 23 1/2 cents higher at $9.50 3/4, while December wheat at the Minneapolis Grain Exchange ended the session at $9.82 1/4, a 27 1/4 cent increase.
U.S. wheat export demand should remain strong, as weekly export sales for 2008-09 for the U.S. is at a marketing year high of 916,500 tons. The average of 522 million bushels of export wheat sales is about 10 percent above the five-year average. Wheat shipments are running at about 37 percent higher than the five-year average.
On the CBOT, December wheat ended the session up 22 3/4 cents at $9.22 1/4 a bushel. December wheat at the Kansas City Board of Trade finished at 23 1/2 cents higher at $9.50 3/4, while December wheat at the Minneapolis Grain Exchange ended the session at $9.82 1/4, a 27 1/4 cent increase.
U.S. wheat export demand should remain strong, as weekly export sales for 2008-09 for the U.S. is at a marketing year high of 916,500 tons. The average of 522 million bushels of export wheat sales is about 10 percent above the five-year average. Wheat shipments are running at about 37 percent higher than the five-year average.
Monday, July 14, 2008
Wheat Crop 62 Percent in, Compared to 67 Percent Last Year
The winter wheat harvest has fallen behind last years pace, as the USDA reports as of Sunday, only 62 percent is in the bins, while last year at the same time 67 percent had been stored.
It is also significantly below the 5-year average of 70 percent. The good news is it did increase by 10 percent over last week.
It is also significantly below the 5-year average of 70 percent. The good news is it did increase by 10 percent over last week.
Friday, May 2, 2008
Wheat Climbs for First Time in Four Days
For the first time in four days, wheat increased in price, as investors think importers may start to increase acquisitions from the U.S. as wheat prices fave declined.
On Thursday the grain fell to $7.765 a bushel, the lowest price since November 20, 2007. It's also down over 40 percent in price from the record it attained in the latter part of February.
"Below $8 a bushel, we may see some buying interest from importers, who have been delaying purchases," said Kenji Kobayashi, a grain analyst at Kanetsu Asset Management Co.
Sales of U.S. wheat grew by 12 percent this week over last week, as they increased to 176,100 metric tons for the week ending April 24, according to the U.S. Department of Agriculture.
July delivery for wheat gained 2.5 cents, to reach $7.925 a bushel, as of 3:28 p.m. Singapore time. It gravitated from $7.90 and $7.9525 in CBOT after-hours trading.
Even with recent price decreases, wheat is still up by over 65 percent over last year. It reached a high of $13.495 on February 27 before falling back.
On Thursday the grain fell to $7.765 a bushel, the lowest price since November 20, 2007. It's also down over 40 percent in price from the record it attained in the latter part of February.
"Below $8 a bushel, we may see some buying interest from importers, who have been delaying purchases," said Kenji Kobayashi, a grain analyst at Kanetsu Asset Management Co.
Sales of U.S. wheat grew by 12 percent this week over last week, as they increased to 176,100 metric tons for the week ending April 24, according to the U.S. Department of Agriculture.
July delivery for wheat gained 2.5 cents, to reach $7.925 a bushel, as of 3:28 p.m. Singapore time. It gravitated from $7.90 and $7.9525 in CBOT after-hours trading.
Even with recent price decreases, wheat is still up by over 65 percent over last year. It reached a high of $13.495 on February 27 before falling back.
Friday, April 25, 2008
Wheat Down 40 Percent from February High
Since the record price of wheat in February, prices have continued to fall as an expected large harvest has caused the golden grain to fall by 40 percent since the $13.50 a bushel record.
On the Chicago Board of Trade (CBOT) soft red winter wheat has plunged to $8.01 a bushel, the lowest since November 2007.
According to the International Grain Council, wheat will probably reach a record harvest of 645 million tons in 2008-09.
"The big rise in prices in 2007 and early 2008 was a strong incentive to increase the planting of wheat," said Sudakshina Unnikrishnan, an agricultural analyst at Barclays Bank.
"The market is pricing-in expectations of a bigger crop from summer onwards."
Government subidies by the U.S. and Europe for corn-based ethanol has been a major contributor to the price increases, as farmers over the last several years have taken acreage out of wheat production and put it into corn.
Wheat farmers will probably be a year too late to get the huge prices, as their huge harvest will cause price decreases, as is already being factored into the market.
Thursday, April 17, 2008
Nations Continue to buy Domestic Wheat to Combat Inflation, High Food Prices
Nations continue to acquire domestic wheat from their farmers in an effort to boost reserves as food prices wreak havoc across the world.
India has bought 7 percent more wheat than usual from its domestic farmers, in an effort to combat inflation, which has reached a three-year high in the country. A number of state firms bought a combined 3.1 million metric tons of wheat from farmers since April 1. Eventually the figure may reach as high as 15 million tons, according to Food Corp. Chairman Alok Sinha.
Inflation for India has climbed to 7.14 percent over the same week a year ago.
Kazakhstan also announced today that they have instituted a four-month ban on wheat exports, also in an attempt to curb inflation and social unrest. While that would help Kazakhstan, it could hurt other nations in the region which have traditionally relied on Kazakh wheat.
India has bought 7 percent more wheat than usual from its domestic farmers, in an effort to combat inflation, which has reached a three-year high in the country. A number of state firms bought a combined 3.1 million metric tons of wheat from farmers since April 1. Eventually the figure may reach as high as 15 million tons, according to Food Corp. Chairman Alok Sinha.
Inflation for India has climbed to 7.14 percent over the same week a year ago.
Kazakhstan also announced today that they have instituted a four-month ban on wheat exports, also in an attempt to curb inflation and social unrest. While that would help Kazakhstan, it could hurt other nations in the region which have traditionally relied on Kazakh wheat.
Wednesday, April 9, 2008
U.S. Wheat Closes Mixed - Weather, Nearby Markets Key Factors
U.S. wheat borrowed from its commodity neighbors corn and soybeans on the CBOT, helping it to gains, even though it was the "the weakest link in there, of all the grains," said Larry Glenn, owner of Glenn Commodities. "It's been following."
On the Chicago Board of Trade, May wheat remained at $9.34 a bushel. Minneapolis Grain Exchange May wheat ended at $13.20, a 5 cent increase, and May Wheat on the Kansas City Board of Trade settled 1 cent higher.
Continued forecasts of rain for the U.S. plains dampened expectations for a large, new crop, causing wheat to pull back from its borrowed surge earlier in the day.
According to the U.S. Department of Agriculture, expected supply and demand continues on course U.S wheat carryout, and remains at 242 million bushels; the same as in March.
Some analysts said the data from the USDA had no significant impact on the wheat markets, as weather, along with nearby markets are the what's affecting the wheat market more than anything else.
Another key factor is the expected huge global harvest this year, which could also hinder prices. Others think importers may keep old wheat inventory minimized, while waiting for the new crop to enter the market.
On the Chicago Board of Trade, May wheat remained at $9.34 a bushel. Minneapolis Grain Exchange May wheat ended at $13.20, a 5 cent increase, and May Wheat on the Kansas City Board of Trade settled 1 cent higher.
Continued forecasts of rain for the U.S. plains dampened expectations for a large, new crop, causing wheat to pull back from its borrowed surge earlier in the day.
According to the U.S. Department of Agriculture, expected supply and demand continues on course U.S wheat carryout, and remains at 242 million bushels; the same as in March.
Some analysts said the data from the USDA had no significant impact on the wheat markets, as weather, along with nearby markets are the what's affecting the wheat market more than anything else.
Another key factor is the expected huge global harvest this year, which could also hinder prices. Others think importers may keep old wheat inventory minimized, while waiting for the new crop to enter the market.
Friday, April 4, 2008
The Weekend Wheat News
Wheat outlook and news
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Grant Given to Cornell to Fight Wheat Disease
Bill and Melinda Gates Foundation awards Cornell $26.8 million.
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US Wheat Review: Up On Short-Covering; MGE May Rises Limit
U.S. wheat futures ended higher Friday on technical buying and short-covering, with the nearby Minneapolis Grain Exchange contract closing limit-up for the third consecutive day.
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Strength in beans and wheat could not rally corn
Wheat opened higher and closed sharply higher. Minneapolis wheat was limit up again and synthetically trading another $1 higher. This carried the HRW and SRW contracts sharply higher on the day.
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Wheat planting up; corn down
The release of the 2008 U.S. Department of Agriculture prospective planting report this week shows wheat acreage up and corn acreage down, which led at least one analyst to predict corn rationing.
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Triticum Mosaic Virus adds new wrinkle to wheat disease picture
Kansas wheat producers needing another reason to control volunteer wheat have a new reason for consideration. First found by Kansas State University researchers in 2006, a newly discovered virus affecting wheat was officially recognized and named Triticum Mosaic Virus in 2007.
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Wheat Jumps on Weather Concerns
Wheat prices shot up Friday as investors bet that a mix of wet and dry weather in wheat-growing U.S. states will damage crops and tighten supplies of the grain used to make bread, pasta and other foods.
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Wheat Acres
The USDA reported planting intention estimates on Monday, March 31. The highly anticipated report held little in the way of major surprises, but the current supply situation and high prices require market participants to look at this report with a great deal of scrutiny. While it appears the marketplace has quickly forgotten about the bearish aspects of the report, market participants will continue to measure factors such as domestic and global demand and weather problems against the potential wheat production set forth by this report.
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Wheat rated in mostly fair to good condition
Winter wheat was 9 percent pastured last week, with the crop rated in mostly fair to good condition.
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Grant Given to Cornell to Fight Wheat Disease
Bill and Melinda Gates Foundation awards Cornell $26.8 million.
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US Wheat Review: Up On Short-Covering; MGE May Rises Limit
U.S. wheat futures ended higher Friday on technical buying and short-covering, with the nearby Minneapolis Grain Exchange contract closing limit-up for the third consecutive day.
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Strength in beans and wheat could not rally corn
Wheat opened higher and closed sharply higher. Minneapolis wheat was limit up again and synthetically trading another $1 higher. This carried the HRW and SRW contracts sharply higher on the day.
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Wheat planting up; corn down
The release of the 2008 U.S. Department of Agriculture prospective planting report this week shows wheat acreage up and corn acreage down, which led at least one analyst to predict corn rationing.
=====
Triticum Mosaic Virus adds new wrinkle to wheat disease picture
Kansas wheat producers needing another reason to control volunteer wheat have a new reason for consideration. First found by Kansas State University researchers in 2006, a newly discovered virus affecting wheat was officially recognized and named Triticum Mosaic Virus in 2007.
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Wheat Jumps on Weather Concerns
Wheat prices shot up Friday as investors bet that a mix of wet and dry weather in wheat-growing U.S. states will damage crops and tighten supplies of the grain used to make bread, pasta and other foods.
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Wheat Acres
The USDA reported planting intention estimates on Monday, March 31. The highly anticipated report held little in the way of major surprises, but the current supply situation and high prices require market participants to look at this report with a great deal of scrutiny. While it appears the marketplace has quickly forgotten about the bearish aspects of the report, market participants will continue to measure factors such as domestic and global demand and weather problems against the potential wheat production set forth by this report.
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Wheat rated in mostly fair to good condition
Winter wheat was 9 percent pastured last week, with the crop rated in mostly fair to good condition.
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Thursday, April 3, 2008
Wheat Rises on Forecast for Dry Conditions in U.S. Great Plains
With dry weather expected to continue in the great plains, wheat rose for the second day in a row, as the winter crop is coming out of dormancy.
Both western Kansas and Texas, along with the Oklahoma Panhandle haven't received rain for two weeks, and there isn't any precipitation expected in the next five days either.
Meteorologists say the severe draught, which extends from Texas to the Canadian Prairies threatens the crop this year.
It is also expected that dry weather will expand to the central midwest from April through August, further disrupting wheat yields.
The U.S. Department of Agricultue said in a report on March 11 that global wheat inventories could fall to 110.4 million metric tons by May 31, with U.S. inventories possibly plunging by 6.6 million tons. That's a 47 percent drop from last year.
July delivery for wheat futures increased by 2 cents to reach $9.525 a bushel on the CBOT.
Both western Kansas and Texas, along with the Oklahoma Panhandle haven't received rain for two weeks, and there isn't any precipitation expected in the next five days either.
Meteorologists say the severe draught, which extends from Texas to the Canadian Prairies threatens the crop this year.
It is also expected that dry weather will expand to the central midwest from April through August, further disrupting wheat yields.
The U.S. Department of Agricultue said in a report on March 11 that global wheat inventories could fall to 110.4 million metric tons by May 31, with U.S. inventories possibly plunging by 6.6 million tons. That's a 47 percent drop from last year.
July delivery for wheat futures increased by 2 cents to reach $9.525 a bushel on the CBOT.
Wednesday, April 2, 2008
Wheat Futures Higher on Weather Concerns: both dry and wet
U.S. wheat futures finished higher at the exchanges, as they bounced back after the recent sell-offs, according to traders.
Contrary to the concerns over the wet acreage affecting planting of corn, wheat is having the opposite problem, as dry weather in key areas may end in the abandonment of wheat acreage in a number of places.
There were also concerns about some excess precipitation in soft winter wheat areas that could hinder planting.
For the Kansas City Board of Trade, May wheat increased by 36 cents to $9.86 a bushel, while the Minneapolis Grain Exchange May wheat increased by its allowable limit of 60 cents, to finish at $12.15. May wheat for the Chicago Board of Trade jumped by 41 1/2 cent to finish a $9.36 1/2.
Wheat inventory expectations and a possible large global planting had kept prices down for awhile.
Contrary to the concerns over the wet acreage affecting planting of corn, wheat is having the opposite problem, as dry weather in key areas may end in the abandonment of wheat acreage in a number of places.
There were also concerns about some excess precipitation in soft winter wheat areas that could hinder planting.
For the Kansas City Board of Trade, May wheat increased by 36 cents to $9.86 a bushel, while the Minneapolis Grain Exchange May wheat increased by its allowable limit of 60 cents, to finish at $12.15. May wheat for the Chicago Board of Trade jumped by 41 1/2 cent to finish a $9.36 1/2.
Wheat inventory expectations and a possible large global planting had kept prices down for awhile.
Tuesday, April 1, 2008
Wheat Prices Drop as Dollar Strengthens
Wheat and other commodities continue to fall on the assumption the strengthening U.S. dollar and equities market will continue to rise.
Another variable is the increase in planting this year which could cause prices to fall in the long term.
"Some of the financial stocks look better, and some people feel that the worst is over" for the U.S. economy, said Vince Ambrose, a trader at MF Global in Chicago. "With the dollar being strong, it's going to hurt these commodities."
Wheat futures fell by 15 cents for May delivery, to $9.14 a bushel on the CBOT at about 12:30 p.m. Earlier in the day they fell to the lowest since January 11, selling for $8,9875 a bushel. Monday's contracts fell by 60 cents, the maximum allowed on the exchange.
Inventories, which fell last year because of poor weather, should increase this year with the larger acreage planted.
Winter Wheat
U.S. farmers have planted 4.1 percent more winter wheat than last year during September through December, according to the report released by the U.S. Department of Agriculture.
Spring wheat sowing is also expected to increase by 7.8 percent over last year's April and May plantings.
"I don't see wheat falling out of bed," said Vince Ambrose, a trader at MF Global in Chicago. "Everybody grows wheat, and the weather looks better, maybe not so much in the U.S. but globally. Along with that, we'll see lower prices down the line."
The increase in planting and supply should keep the wheat prices down more than in the recent past.
The wheat crop in the U.S. is worth about $13.7 billion, the fourth-largest crop in the U.S. The leading crops are corn, soybeans and hay.
Friday, March 28, 2008
Wheat News around the Web
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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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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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.
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