Soft commodities price watch: Wheat nearing three-month peak
iNVEZZ.com, Monday, October 7th: Grain futures have been mixed today, with wheat trading near the highest price level since June amid speculation of robust demand for US supplies and growing concerns over tightening global supplies.
The wheat price for December delivery on the Chicago Board of Trade (CBOT) had risen as much as 0.51 percent to trade at $6.9050 a bushel as of 11:30 BST. The daily high was near the contract’s October 3 peak of £6.9787 a bushel, the highest price recorded since June 24.
The soybean price has also advanced today, touching a one-week high on speculation that rain in the US will delay harvesting in the world’s largest producer. The contract for November delivery initially rose much as 0.8 percent to $13.05 a bushel before retracing some gains. It stood at $12.9425 a bushel at 11:35 BST.
Elsewhere on the CBOT, the corn price for December delivery dropped as much as 0.2 percent to $4.4225 a bushel after touching $4.3500 a bushel last week, the lowest intraday price since August 2010. As of 11:40 BST, the contract traded at $4.4325 a bushel, unchanged from Friday’s closing level.
Global corn and soybeans inventories before next year’s Northern Hemisphere harvests probably will be larger than the US government predicted last month, while wheat reserves may fall, a Bloomberg survey of 17 analysts and trading firms has shown.
The US Department of Agriculture’s (USDA) scheduled monthly update on October 11 for domestic and global estimates of supply and demand may be delayed by an extended shutdown of the federal government. The USDA has already suspended its daily reports.
**Robusta coffee gains as roasters tap stockpiles**
The Robusta coffee price today rose for a fourth day in London, extending the biggest one-week gain in almost 20 months, as roasters tap inventories before the start of harvesting in leading grower Vietnam.
Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report e-mailed to Bloomberg today: “When the price fell in recent months, a number of suppliers, especially in Vietnam, the main producing country, opted to hold back some of last season’s crop. Consequently, processors have had to turn increasingly to exchange reserves.”
!m[Robusta coffee gains as roasters tap stockpiles ahead of Vietnam crop ](/uploads/story/5922/thumbs/pic1_inline.jpg)
The contract for delivery in November on NYSE Liffe in London had climbed 0.8 percent to trade at $1,722 a tonne as of 10:48 BST, while Arabica coffee for delivery in December was unchanged at $1.144 a pound on ICE Futures US in New York.
The cocoa price also advanced today, with the contract for December delivery in London gaining as much as 0.5 percent to £1,703 a tonne. Futures for the same month of delivery in New York had risen 1.15 percent to be at $2,641 a tonne as of 11:55 BST.
Refined, or white, sugar for delivery in December on NYSE Liffe today added as much as 0.4 percent to $494 a tonne, while the raw sugar price for March delivery on ICE rose 0.3 percent to $0.1853 a pound.
Among other agricultural commodities, rubber has bounced off from an near two-month low on bets that demand from China, the world’s largest consumer of the commodity used in tyres, may increase as buyers return from a week-long holiday. The contract for March delivery on the Tokyo Commodity Exchange today advanced as much as 1.3 percent to 257.5 yen a kilogramme ($2,652 a metric tonne).
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.