Wheat surges to record as US stockpiles head for 60-yr low
Wheat futures in Chicago breached 11 dollar a bushel for the first time, rising by the exchange-imposed daily limit for a sixth day after the US forecast its lowest inventories in 60 years.
By PTI |
LONDON: Wheat futures in Chicago breached 11 dollar a bushel for the first time, rising by the exchange-imposed daily limit for a sixth day after the US forecast its lowest inventories in 60 years.
Stockpiles in the world's biggest exporter will drop to 272 million bushels at the end of May, 6.8 per cent less than expected a month ago and down 40 per cent from a year earlier, the US Department of Agriculture said in a report February 8.
Inventories will be the lowest since 1948 when farmers grew less and shipped supplies overseas to help countries to rebuild after World War II.
This month's unprecedented rally in wheat may raise costs for companies, including Kellogg Co. and General Mills, the largest US cereal makers. Higher food prices are stoking inflation, increasing social tension in developing countries and making it difficult for central bankers to spur economic growth by cutting interest rates.
Wheat for March delivery rose by 60 cents to a record 11.53 dollar a bushel on the Chicago Board of Trade. Prices gained 16 per cent last week and more than doubled in the past year. The exchange doubled its daily limit from today after prices gained the previous maximum of 30 cents for five straight days.
Stockpiles in the world's biggest exporter will drop to 272 million bushels at the end of May, 6.8 per cent less than expected a month ago and down 40 per cent from a year earlier, the US Department of Agriculture said in a report February 8.
Inventories will be the lowest since 1948 when farmers grew less and shipped supplies overseas to help countries to rebuild after World War II.
This month's unprecedented rally in wheat may raise costs for companies, including Kellogg Co. and General Mills, the largest US cereal makers. Higher food prices are stoking inflation, increasing social tension in developing countries and making it difficult for central bankers to spur economic growth by cutting interest rates.
Wheat for March delivery rose by 60 cents to a record 11.53 dollar a bushel on the Chicago Board of Trade. Prices gained 16 per cent last week and more than doubled in the past year. The exchange doubled its daily limit from today after prices gained the previous maximum of 30 cents for five straight days.
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