Wheat resumes rally on dry weather woes

CHICAGO: Wheat futures rose for the ninth time in 10 sessions on speculation that dry weather from Ukraine to Argentina will limit global grain supplies. Ukraine’s winter-wheat crop is in “poor condition” after persistent dry weather, and the lack of snow cover may leave crops vulnerable to damaging cold, Telvent DTN said.

The country’s grain exports fell 9.3%in December from November, UkrAgro-Consult said. A lack of sufficient rain also may hurt developing corn and soybean plants in Argentina , DTN said. “A month ago, we all thought we were going to drown in wheat from Ukraine, and now all of a sudden, they’ve scaled their exports back,” Jason Britt, the president of brokerage Central States Commodities, said by telephone from Kansas City, Missouri.

“With the corn and bean markets doing what they’re doing, that’s sure helping our exports.” Wheat futures for March delivery rose 1.2% to settle at $6.5275 a bushel on the Chicago Board of Trade.