Soft commodities price watch: Wheat hits two-month high
iNVEZZ.com Friday, September 27th: Wheat price has today advanced to its highest level in more than two months due to increased demand for US supply and concerns that Argentina’s harvest may be lower than previously forecast.
The US Department of Agriculture (USDA) yesterday said in a report that exporters sold a net 620,212 metric tonnes in the week ended September 19, with sales over the past four weeks running 40 percent higher than a year earlier. China, the world’s biggest consumer, absorbed 28 percent of new sales, USDA said. Separately, the United Nations’ Food & Agriculture Organization said on September 20 that wheat harvest in Argentina, the southern hemisphere’s second-biggest exporter, may reach 9.5 million tonnes,
down from the previous estimate of 11 million tonnes.
The wheat price for December delivery on the Chicago Board of Trade (CBOT) has gained as much as 0.3 percent to $6.80 a bushel, the highest for futures since July 16. The contract was at $6.777 a bushel at 12:30 BST.
Soybeans also rose in Chicago and are poised to gain for a first quarter in four, after surging US export sales indicated steady demand from China, the world’s biggest importer of the oilseed. Net export sales of soybeans had more than tripled to 2.82 million metric tonnes in the week through September 19 from the prior period, the USDA reported yesterday. The most recent shipment figures included 2.29 million tonnes destined for China.
The soybeans price for November delivery rose by as much as 0.53 percent to $13.23 a bushel at 12:33 BST. Elsewhere on the CBOT, the corn price for December was little changed at $4.57 a bushel, set for a fourth straight quarter of decline.
**Cocoa Up, Sugar and Cocoa Down**
The cocoa price climbed for a second day in New York, as demand from chocolate makers more than compensated for sales of beans from top producer Ivory Coast.
Bloomberg quoted Aakash Doshi, an analyst at Citigroup Inc. in New York, as saying in a report yesterday that cocoa supplies will trail demand by more than 135,000 metric tonnes in the 2013-14 season starting next month, a second straight year of shortages. Ivory Coast offered to sell beans for shipment in the 2014-15 season at auctions yesterday and the day before, after futures traded in London entered a bull market earlier this month. That was an ‘early start’ to forward sales, Doshi said.
!m[Chocolate makers push cocoa price higher](/uploads/story/5750/thumbs/pic1_inline.jpg)
Cocoa for December delivery on ICE Futures US in New York gained as much as 0.9 percent to $2,620 a tonne, the highest since September 23. Futures for the same month of delivery on NYSE Liffe in London added 0.3 percent to £1,703 a tonne.
Among other soft commodities, raw sugar for delivery in March fell as much as 0.9 percent to $0.1802 a pound in New York, while white sugar for December delivery retreated 0.9 percent to $484.10 a tonne in London. The Arabica coffee price for December delivery was little changed at $1.156 a pound on ICE. Robusta coffee for delivery in November was 0.8 percent lower at $1,649 a tonne on NYSE Liffe.
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