Soft Commodities Price Watch: Wheat Slides as Iraq and Egypt Shun U.S. Supplies
iNVEZZ.com Wednesday, August 7th: Improving U.S. weather and crop prospects continued to weigh on grain futures today, but prices retraced some of yesterday’s losses.
The corn price for December delivery on the Chicago Board of Trade (CBOT) rose 0.44 percent to $4.6125 a bushel after the contract yesterday dropped to $4.55, the lowest price since October 2010. Elsewhere on the CBOT, soybeans also traded slightly higher, with the November contract up 0.24 percent to $11.70 a bushel after earlier touching $11.64, the lowest level for a most-active contract since January 2012.
Wheat declined, however, as Iraq and Egypt shunned U.S. grain in tenders yesterday, indicating prices may need to decline to be competitive in the Middle East markets. Egypt, the world’s largest wheat buyer, bought 60,000 tonnes of wheat each from Romania and Ukraine yesterday, while Iraq purchased 150,000 tonnes of Australian wheat and 50,000 tonnes of the grain from Canada.
The CBOT wheat price for December delivery has fallen 0.38 percent to $6.4800 a bushel by 14:20 BST today. Milling wheat for November delivery on the NYSE Liffe in Paris has declined 0.1 percent to €184 a metric tonne, close to the lowest level since December 2011.
**Cocoa and Coffee Up, Sugar Down**
The cocoa price rose in London on speculation dry weather will damage the next crop in West Africa, the world’s main growing region. The September contract gained 0.7 percent to £1,621 a metric tonne by on the NYSE Liffe today, while the same-month contract delivery gained 0.6 percent to $2,402 a tonne on ICE Futures U.S. in New York.
Among other soft commodities coffee also advanced today as traders expect Brazil’s government announce introduction of measures to aid the country’s struggling coffee farmers.
Robusta coffee for delivery in September fell 0.1 percent to $1,879 a tonne on the NYSE Liffe, while Arabica for delivery in September advanced 0.7 percent to $1.187 a pound on ICE. As of the same time sugar prices declined, with the October contract for delivery in New York falling 0.1 percent to $0.1653 a pound. Yet, in London the raw sugar price was 0.3 percent higher at $489.80 a tonne.
Elsewhere, cotton futures for December delivery traded at $0.8584 a pound, up 0.2 percent, while the rubber price edged 0.32 percent higher on the Tokyo Commodity Exchange (TOCOM). The contract for delivery in January traded at 247.2 yen a kilogramme.
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