Soft Commodities Price Watch: Indications of Revived Demand Lift Wheat
iNVEZZ.com Tuesday, July 30th: Grain futures were broadly higher today, with wheat heading for the biggest gain in three weeks on signs demand from importers is improving after a recent fall in prices.
Japan, the world’s largest buyer of U.S. wheat, has agreed to resume purchases of the western-white variety, lifting a two-month ban imposed after the discovery of an unapproved gene-altered crop in Oregon. Meanwhile, Egypt, the world’s largest wheat importer, is tendering for the grain today, its fourth state purchase this month. China has also stepped up purchases of U.S. wheat supplies as prices on the
Chicago Board of Trade (CBOT) slumped to a 13-month low on July 25.
The wheat price for delivery in September on the CBOT was 0.61 percent higher at $6.5550 a bushel as of 14:30 BST today, after the future reached $6.5650 a bushel earlier in the trading session. Milling wheat for delivery in November rose 0.4 percent to €187 a tonne on the NYSE Liffe in Paris after yesterday it
touched its lowest level since December 2011.
The U.S. Department of Agriculture (USDA) reported yesterday that the country’s winter wheat harvest was 81 percent complete, in line with the five-year average of 82 percent. The U.S. spring wheat crop is maturing, with 94 percent in the heading phase. According to the USDA weekly crop progress report, 68 percent of the wheat was rated as of good-to-excellent quality, unchanged from a week earlier.
Among other grains, the corn price for delivery in December today climbed 0.9 percent to $4.7750 a bushel in Chicago, rebounding from yesterday’s $4.7125, the lowest level for a most-active contract since October 2010. U.S. corn was rated 63 percent good-to-excellent in the week to July 28, unchanged from the week before but higher than the 24 percent a year ago, the USDA said in its report yesterday, adding that 71 percent of the crop was in the silking stage, the reproductive phase that occurs during pollination, compared to 43 percent a week ago.
Meanwhile, the soybean price for delivery in November rose 0.29 percent to $12.2350 a bushel after sliding to $12.0725, the lowest since February 2012, on July 26. The USDA rated 63 percent of the soybean crop good-to-excellent, down from 64 percent a week ago but better than the 29 percent last year when a devastating drought curbed production.
**Sugar at Four-Week High**
Sugar climbed to a four-week high in New York today on speculation demand may be higher than forecast as a frost may cut output in Brazil and Argentina.
According to Marco Antonio dos Santos, an agronomist at Sao Paulo-based weather forecaster Somar Meteorologia, frost formed last week in some sugar cane-, corn-, wheat-and coffee-growing regions of Brazil. Frost was also seen in Tucuman, Argentina’s biggest cane-producing state, Bloomberg reported today, citing researcher Green Pool.
!m[Raw Sugar Climbs to Four-Week High with Frost Danger to Supply](/uploads/story/4448/thumbs/pic1_inline.jpg)
Raw sugar for delivery in October gained 0.2 percent to $0.1695 a pound on ICE Futures U.S. in New York. Earlier, the sugar price touched $0.1697 a pound, the highest for a most-active contract since July 1. Meanwhile, white sugar for October delivery was up 0.6 percent at $491.80 a metric tonne on NYSE
Liffe in London.
Among other soft commodities, the Arabica coffee price for delivery in September was unchanged at $1.2115 a pound on ICE, while Robusta coffee for delivery in September was 0.2 percent lower at $1,895 a tonne on NYSE Liffe. The cocoa price for September delivery fell 0.2 percent to $2,275 a tonne in New York. The contract was unchanged at £1,543 a tonne in London.
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