Soft Commodities Price Watch: Wheat Is Going Up as Japan Lifts U.S. Wheat Ban

By: Boris Minchev
Boris Minchev
Boris calls himself a 'share-price' expert, claiming he can explain why any stock is at its current price. And… read more.
on Aug 1, 2013 Thursday August 1st: Wheat prices are on the rise again as Japan returns to the market. Corn prices are decreasing due to expectations for cooler U.S. weather which should boost production and increase global supplies. Coffee exports from Indonesia in July are on a four-year high as prices increased. The U.S. soybean harvest is also expected to jump by 13 percent to 93.1 million tonnes. Cocoa prices are also increasing with West Africa facing drought.

After Japan lifted its ban on U.S. wheat, bids for soft white wheat for August delivery increased by 6.50 to 11.50 cents per bushel on Wednesday as compared to Tuesday, according to USDA Market News Service at the Port of Portland. Analysts believe that prices may receive another increase of 5-8 cents a bushel if Japan starts purchasing large quantitates. European wheat futures are also rising but this time it is due to crop uncertainty on the Old Continent. There are also concerns that French crop quality will not be up to par as protein levels are on the low side. Prices of Paris futures on milling wheat for November delivery was €187.75 a tonne by 10:15 BST.

Corn for December delivery fell to $4.734 a bushel on the Chicago Board of Trade (CBOT) until 13:55 BST. This year might be record-breaking one for corn farmers with an expected harvest of 13.95 billion bushels of corn which is 29 percent more than last year. Overall, corn prices declined 6.3 percent in July which is the sixth month in a row that corn has been dropping.

Coffee sales from Indonesia are increasing and reached a four-year high in July. The country is the third-largest producer of Robusta coffee beans which are used by Nestle in their instant drinks. Exports from Sumatra increased by the whopping 378 percent and reached 55,709 tons in July compared to 11,648 tons in the previous month. Robusta coffee futures for delivery in September got as high as $1,888 a ton on the NYSE Liffe which is a 10.8 percent increase from $1,704 on June 14, the lowest level since October 2010.

!m[Record-breaking corn harvests are expected ](/uploads/story/4514/thumbs/pic1_inline.jpg)
According to the U.S. Department of Agriculture (U.S.DA), the U.S. soybean harvest will rise by 13 percent to 93.1 million tons. Soybean futures for November delivery, which are the most actively traded at the moment, rose to $12.026 a bushel.
Cocoa futures on for September delivery on the London market climbed to $1,587 (£1,042) a ton due to dry weather in West Africa. Cocoa pod counts will be carried out during the next four to six weeks and this will show whether there will be any supply issues concerning cocoa in the next months.

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