More Wheat news for those interested. The scary quote from below is ----"This rally has more legs, it looks constructive for a move to $6.30/$6.40," Jonathan Barratt, managing director at Commodity Broking Services in Sydney, said.
"When it falls, it only comes back to an area where you want to buy it again," Barratt said, adding that a move to $8 a bushel was possible.___--------------
"MARKETS-GRAINS (UPDATE 2)
* Russia grain exports seen nearly half previous year
* Front-month wheat up 33 percent, best since August 1973
* Paris wheat opens at fresh contract high
* IGC to release monthly grain market report
* Coming Up: U.S. initial jobless claims; 1230 GMT
SINGAPORE/MADRID, July 29 (Reuters) - U.S. wheat futures rose on Thursday, on track for their biggest monthly gain since 1973 on fears of lower exports from drought-stricken eastern Europe, especially third-largest global exporter Russia.
Russian analysts on Wednesday forecast a near halving of the country's grain exports as its worst drought in years hits output, while other producers in the region, home to three of the world's top ten wheat exporters, are also likely to have less to sell.
There was no relief in sight for Russia's wheat areas, which will see little to no rain over the next week, a U.S. agricultural meteorologist said on Wednesday.
Front-month U.S. wheat futures rose to $6.18-3/4 a bushel at 0944 GMT, just short of the 13-month high of $6.23-1/4 hit the previous day and heading for a 33 percent gain this month.
"This rally has more legs, it looks constructive for a move to $6.30/$6.40," Jonathan Barratt, managing director at Commodity Broking Services in Sydney, said.
"When it falls, it only comes back to an area where you want to buy it again," Barratt said, adding that a move to $8 a bushel was possible.
In February 2008, during the height of a global panic about food supplies that drove up prices across the grains and oilseeds complex, front-month wheat rose to a record high above $13 a bushel.
Meanwhile in France, Europe's top wheat producer, benchmark milling wheat futures opened at fresh contract highs on prospects of tighter supplies from Russia to the export market, and later pulled back as dealers harvested recent gains.
"The high we saw this morning is still based on lower Russian wheat prospects and the fact that Egypt will let French wheat suppliers use (more) ports in France to load cargoes," a trader said.
Egypt's main government wheat buyer (GASC) said on Wednesday it would allow French wheat suppliers use two ports in France to load cargoes, provided they cover freight costs.
This reverses a decision made by GASC in 2009 that required exporters to load 55,000-60,000 tonne cargoes at a single port and allows France to compete more effectively in selling to the world's biggest wheat importer.
By 0938 GMT benchmark November wheat futures in Paris were off 0.26 percent at 189.00 euros ($246) per tonne after hitting a new contract high of 193.75 euros a tonne earlier, up a third since the start of the month. The contract
Global wheat supplies will come into clearer focus later on Thursday when the London-based International Grains Council releases its latest grain market report, due at 1300 GMT.
Further data are due on Friday, when the Canadian Wheat Board gives its first forecasts for Western Canadian wheat and durum production since June 11.
Recent warm, dry weather has boosted crops in the major wheat exporter, but record rains earlier left the largest unplanted acreage in 39 years.
Still, analysts say ample wheat stocks built up during the last two years of the largest global wheat harvests in history should ensure sufficient supplies.
Corn and soybean futures aso posted gains in Chicago, although they have been lagging wheat due to good weather for the developing U.S. crops."
Add to My Watchlist
What is My Watchlist?
