Soft Commodities Price Watch: Wheat Climbs on Supply and Demand Prospects
iNVEZZ.com Wednesday, July 24th: Grain futures were mixed today, with the wheat price rising amid signs of sustained demand with Egypt to hold its third import tender this month and on uncertainty about Russia’s production prospects.
Egypt, the world’s largest wheat importer, is seeking wheat for September 1-10 shipment in a tender today after buying 300,000 metric tonnes last week and 180,000 tonnes on July 2, Bloomberg has reported. Further improving the wheat demand outlook, China, the biggest producer of the grain, has also been buying wheat in recent weeks after rain hurt domestic crops.
Amid these signs of accelerated demand, Russia’s Grain Producers Union said today that the country may produce only 45 million to 48 million tonnes of wheat this year as drought has hurt crops in the Volga area and the southern Rostov region. This estimate compares to the 53 million tonnes predicted by the U.S.
Department of Agriculture’s (USDA) Foreign Agricultural Service.
Wheat for delivery in September on the Chicago Board of Trade (CBOT) has advanced 0.38 percent to $6.5625 a bushel by 14:39 BST today. Meanwhile, milling wheat for delivery in November traded on NYSE
Liffe in Paris has risen 0.3 percent to €190.75 a tonne.
Among other grains, the CBOT corn price for December delivery was 0.46 percent down at $4.8325 a bushel, while soybeans for delivery in November climbed 0.06 percent to $12.6100 a bushel.Oilseed slid the most in more than a week yesterday and today tumbled to $12.5525, the lowest since July 15.
**Coffee Down on Brazil Weather**
The coffee price has fallen in New York today, reversing yesterday’s gains, as growing areas in top producer Brazil have so far escaped freezing temperatures forecast earlier this week.
Arabica coffee for delivery in September tumbled 2.7 percent to $1.2270 a pound by 14:42 BST on ICE Futures U.S. in New York. Robusta coffee for September delivery has fallen one percent to $1,911 a metric tonne on NYSE Liffe in London. Elsewhere, the cocoa price for September delivery rose 0.2 percent to £1,601 a tonne in London and declined 0.72 percent at $2,342 a tonne in New York.
Among other agricultural commodities, raw sugar for delivery in October was down 0.49 percent to $0.1626 a pound on ICE today. Meanwhile, white sugar for delivery in the same month in London was little changed at $475.10 a tonne. Investors are expecting data from industry group Unica on progress in the Brazilian Centre South cane harvest, the main growing region of the world’s largest sugar producer. The figures are set to be released at 18:00 BST today.
!m[Coffee Price Plunges as Brazil May Have Escaped Freeze](/uploads/story/4303/thumbs/pic1_inline.jpg)
**Rubber Declines on China Manufacturing Data**
The rubber price ended a five-day winning run today after a survey of purchasing managers from HSBC Holdings Plc and Markit Economics suggested that China’s manufacturing is contracting at a faster-than-estimated pace this month, increasing concerns that demand may slow in the largest consumer of the commodity used in tyres.
Rubber for delivery in December dropped as much as 0.7 percent to 254.4 yen a kilogram on the Tokyo Commodity Exchange (TOCOM), after reaching 259.3 yen a kilogram, the highest intraday price since July 19.
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