uscitizen
Villified User
Wheat Hits Record on Supply Concerns
Wednesday February 6, 1:46 PM EST
NEW YORK (AP) — Wheat futures reached a new record high Wednesday as investors bet that tightening U.S. supplies and poor harvests around the globe will push grain prices higher — worsening food inflation.
Other agriculture commodities spiked on the rally, with soybean and corn futures both hitting records. Precious metals rose broadly, while energy futures fell.
Wheat prices have trekked relentlessly higher as global supplies have shrunk. Smaller-than-expected harvests around the world, due partly to dry weather, have left stockpiles depleted even as demand continues unabated. That's brought an increasing number of foreign buyers to the U.S. market seeking dwindling supplies of milling-quality wheat used in bread, pasta and other foods.
U.S. wheat exporters have sold more than 15 million bushels a week in seven of the last 11 weeks, well above the U.S. Department of Agriculture's weekly target of about 1 million bushels a week.
"Today's trade is all about wheat. There's an extremely short supply of wheat of superior quality, and some end users will pay whatever it costs to get it," said Jay Calhoun, analyst with Walsh Trading.
Wheat for March delivery jumped 30 cents to hit an all-time record of $10.33 bushel in overnight trading on the Chicago Board of Trade. That met the exchange-allowed daily limit, halting trading for the day.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d8ul027o0&date=20080206
Just one way the falling dollar boosts inflation.
Wednesday February 6, 1:46 PM EST
NEW YORK (AP) — Wheat futures reached a new record high Wednesday as investors bet that tightening U.S. supplies and poor harvests around the globe will push grain prices higher — worsening food inflation.
Other agriculture commodities spiked on the rally, with soybean and corn futures both hitting records. Precious metals rose broadly, while energy futures fell.
Wheat prices have trekked relentlessly higher as global supplies have shrunk. Smaller-than-expected harvests around the world, due partly to dry weather, have left stockpiles depleted even as demand continues unabated. That's brought an increasing number of foreign buyers to the U.S. market seeking dwindling supplies of milling-quality wheat used in bread, pasta and other foods.
U.S. wheat exporters have sold more than 15 million bushels a week in seven of the last 11 weeks, well above the U.S. Department of Agriculture's weekly target of about 1 million bushels a week.
"Today's trade is all about wheat. There's an extremely short supply of wheat of superior quality, and some end users will pay whatever it costs to get it," said Jay Calhoun, analyst with Walsh Trading.
Wheat for March delivery jumped 30 cents to hit an all-time record of $10.33 bushel in overnight trading on the Chicago Board of Trade. That met the exchange-allowed daily limit, halting trading for the day.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d8ul027o0&date=20080206
Just one way the falling dollar boosts inflation.
