Soft Commodities Price Watch: Milling Wheat Up for Second Day in Paris
iNVEZZ.com Thursday, July 4th: The Chicago Board of Trade (CBOT) and the ICE Futures U.S. in New York are closed today for Independence Day. Elsewhere, investors have been active and milling wheat futures rose for a second day in Paris on signs demand is increasing following a drastic fall in prices.
China, the world’s biggest wheat consumer, bought 360,000 metric tonnes from the United States in a sale reported yesterday by the U.S. Department of Agriculture (USDA). According to the USDA’s Foreign Agricultural Service, China’s wheat imports will climb to four million tonnes in 2013-14 from three million tonnes a year earlier.
“Rumors circulated that French wheat may also figure into Chinese business,” supporting prices in Paris, Jaime Nolan-Miralles, a commodity risk manager at INTL FCStone Inc. in Dublin, has said, as quoted by Bloomberg.
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Wheat prices have also gained this week as Egypt, the world’s biggest importer of the grain, purchased 180,000 tonnes of Romanian and Ukrainian wheat in its first tender since February. After the wheat price fell to its lowest level since March 2012 in Paris on Tuesday on signs that world supplies will increase with the start of harvesting in the northern hemisphere, it gained 0.8 percent yesterday, boosted by
Egypt’s return to the market. Milling wheat for November delivery extended its gains today, climbing 0.6 percent to €196 a tonne on the NYSE Liffe in Paris by 12 p.m. in the French capital.
Despite the rise, the most-active wheat contract is still down 21 percent this year with estimates pointing to increased production. According to the Agricultural Market Information System, global wheat output may hit a record at 704 million tonnes, compared to a previous forecast of 702 million tonnes.
**Cocoa Climbs to Three-Week High in London**
Among other significant price movements in the international agriculture markets today, cocoa rose to a three-week high in London on speculation the next harvest in West Africa, the world’s main growing region, will be delayed.
!m[Cocoa Hits Three-Week High in London, Rubber Advances in Tokyo](/uploads/story/3685/thumbs/pic1_inline.png)
Dry weather in the largest cocoa producer Ivory Coast and second-ranking Ghana pushed up the cocoa price for September delivery yesterday, when the commodity rallied 1.6 percent to £1,521 a tonne, the highest price for the September contract since June 13. Today, cocoa has continued climbing, adding 1.3 percent to £1,518 a metric tonne by 12:08 BST on the NYSE Liffe in London.
Elsewhere on the NYSE Liffe in London, the Robusta coffee price for September delivery rose 0.3 percent to $1,816 a tonne, while the white sugar price for October delivery gained 0.7 percent to $479.80 a tonne.
In Tokyo, the rubber price extended its recovery from the nine-month low of 225.00 yen a kilogramme hit in late June amid worries that demand may weaken from China, the world’s largest consumer of the commodity used in tires. Rubber for December delivery on the Tokyo Commodity Exchange (TOCOM) today added 1.2 percent to 246.80 yen a kilogramme.