Thursday, June 27, 2013

Commodities Buzz: US Wheat Prices Tumble To One And Half Year Low

The Wheat prices in Chicago tumbled to one and half year low yesterday amid a general weakness in commodity prices as dollar gains hurt the sentiments. There are indications that the early harvest from southern Europe and Russia would turn into a season with improving yields in grains.

The head of Russia's Grain Producers' Union said on Wednesday that the official forecast wheat would fall short of the farm ministry's 95m-tonne target though the early harvest results showed early wheat yields at 4.28 tonnes per hectare, up around 1 tonne per hectare above the results a year ago. Barley yields are also seen up 1.5 tonne per hectare at 5.24 tonnes per hectare.

Farmers across the world are forecast to harvest 682.1 million tons of wheat in 2013-14, up 4.1% compared to a 2012-13 crop estimated at 655.1 million tons according to the International Grains Council (IGC). Although there is continued uncertainty about harvest prospects in some major producers, global wheat availabilities are still set to be ample over the year ahead, the IGC has noted.

Chicago wheat futures for July slipped more than a percent to $6.67 a bushel - the contract's weakest finish since November 2011.

Source by Commodity Insights

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