By Commodity News Service Canada
Winnipeg, Oct. 22 – Minneapolis, Kansas City, and Chicago wheat futures closed higher on Tuesday, as prices rallied following losses seen in the previous session. Additional strength came from good export demand, as it was reported that Jordan purchased 100,000 tonnes of US milling wheat, market watchers said. Freezing temperatures in some Argentinian production areas added to the bullish tone. However, gains were limited by ideas that the Black Sea region has planted more wheat than originally thought, analysts said. Speculation that Argentina could have larger wheat production than originally thought was also bearish.
Prices in US$ per bushel:
CBOT Wheat Dec 7.0075 up 0.0100
Mar 7.1075 up 0.0100
MGEX Spring Wheat Dec 7.5625 up 0.0450
Mar 7.6625 up 0.0475
KCBT Red Wheat Dec 7.6550 up 0.0425
Mar 7.6500 up 0.0450
– There are concerns that last week’s report that pegged Argentinian wheat production at 8.8 million tonnes was incorrect and that the number is in fact much larger.
– The USDA reported that the US winter wheat crop condition is rated as 65% good-to-excellent, 31% fair, 3% poor and 1% very poor.
– According to the Argentine Agriculture Ministry, approximately 247,105 acres of wheat was damaged due to cold weather and a lack of rain. Argentina is the second largest exporter of wheat in the Southern Hemisphere.