Daily World Wheat News: Prices rally amid good export demand

By Commodity News Service Canada

Winnipeg, Oct. 22 – Minneapolis, Kansas City, and Chicago wheat futures closed higher on Tuesday, as prices rallied following losses seen in the previous session. Additional strength came from good export demand, as it was reported that Jordan purchased 100,000 tonnes of US milling wheat, market watchers said. Freezing temperatures in some Argentinian production areas added to the bullish tone. However, gains were limited by ideas that the Black Sea region has planted more wheat than originally thought, analysts said. Speculation that Argentina could have larger wheat production than originally thought was also bearish.

Prices in US$ per bushel:

CBOT Wheat           Dec     7.0075    up 0.0100

                     Mar     7.1075    up 0.0100

MGEX Spring Wheat    Dec     7.5625    up 0.0450

                     Mar     7.6625    up 0.0475

KCBT Red Wheat       Dec     7.6550    up 0.0425

                     Mar     7.6500    up 0.0450

   There are concerns that last week’s report that pegged Argentinian wheat production at 8.8 million tonnes was incorrect and that the number is in fact much larger.

   The USDA reported that the US winter wheat crop condition is rated as 65% good-to-excellent, 31% fair, 3% poor and 1% very poor.

   According to the Argentine Agriculture Ministry, approximately 247,105 acres of wheat was damaged due to cold weather and a lack of rain. Argentina is the second largest exporter of wheat in the Southern Hemisphere.

 

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