Soft commodities price watch: Wheat re-approaches four-month high
iNVEZZ.com, Wednesday, October 23rd: Grain futures have traded higher today with wheat prices re-approaching a four-month high as concerns over global crop prospects fuelled expectations of increased demand for US supplies.
Wheat was supported by market players who continued to monitor deteriorating crop prospects in Argentina and Russia. Unfavourable crop prospects in these countries could mean increased demand for supplies from the US, the world’s third largest wheat producer and biggest exporter.
The wheat price for delivery in December on the Chicago Board of Trade (CBOT) had climbed 0.93 percent to stand at $7.0725 a bushel as of 13:05 BST, near Monday’s peak of $7.1125, the highest price level since June 21. Milling wheat for delivery in January on NYSE Liffe in Paris today rose 0.7 percent to €204.25 a tonne, after touching €205.75, the highest price level since June 5 for a most-active contract.
Elsewhere on the CBOT, the soybean price for delivery in January had risen 0.52 percent to reach $13.0425 a bushel as of 13:17 BST. The corn price for delivery in December, meanwhile, was 0.57 percent higher at $4.4175 a bushel.
**Coffee price plunges**
Coffee prices today fell to the lowest level since March 2009 as market players continued to focus on massive global supplies. As of 13:30 BST, Arabica coffee for December delivery on the ICE Futures US Exchange traded at $1.1200 a pound, up 0.1 percent. The contract yesterday tumbled to 1.1185 a pound, the lowest level since March 18, 2009, before settling at 1.1195, down 0.67 percent for the day.
!m[Arabica coffee price falls to the lowest level since March 2009 ](/uploads/story/6293/thumbs/pic1_inline.jpg)
In London, Robusta coffee price for November delivery on NYSE Liffe was slightly up at $1.619 a tonne as of 13:42 BST. As of the same time, sugar futures for March delivery in New York traded at $0.1933 a pound, down 0.62 percent. Refined, or white sugar for December delivery on NYSE Liffe in London declined to $509.20 a tonne.
The cocoa price for December delivery in New York had plunged 1.88 percent to stand at $2,717 a tonne as of 13:46 BST, while in London beans for the same month of delivery were down at £1,730 a tonne.
Among other agricultural commodities, the rubber price dropped for the first time in three days as Japan’s currency gained against the dollar following a report which showed US employers had added fewer jobs than estimated in September. The contract for March delivery lost as much as 0.8 percent to 266.4 yen a kilogramme ($2,716 a metric tonne) on the Tokyo Commodity Exchange (TOCOM) and was at 267.8 yen by 10:53 local time.
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