Its the beginning of a great global rush to build stockpiles ... They've all left it terribly late!
------------------------------------------------------ Wheat Gains to Record in Chicago as Importers Rush for Supplies
By Jae Hur Enlarge Image/Details
Aug. 23 (Bloomberg) -- Wheat futures in Chicago rose to a record, extending gains for a fifth day, as importers, including India, Taiwan and Japan, seek to buy the grain and adverse weather reduces supply in major exporting countries.
India, the world's second-biggest wheat consumer, plans to invite bids today to buy an ``unspecified'' quantity of the grain to bolster government reserves. Global inventories will fall to 114.8 million tons by May 31, the lowest in 26 years, the U.S. Department of Agriculture said Aug. 10.
``We may see wheat futures go up further as buyers are rushing to secure more and global supplies are very tight,'' said Takaki Shigemoto, an analyst at commodity broker Okachi & Co. ``We anticipate a higher-than-expected number for weekly U.S. export sales later today.''
Wheat for December delivery gained as much as 10.50 cents, or 1.4 percent, to $7.4225 a bushel. The contract traded at $7.40 in after-hours electronic trading on the Chicago Board of Trade at 5 p.m. Singapore time. Wheat prices have more than doubled in the past year.
In the export market, the Taiwan Flour Millers Association, which represents 34 grain users, reissued a tender for tomorrow to import 92,000 tons of U.S. No. 1 wheat after it failed to buy the grain on Aug. 21.
Japan's Ministry of Agriculture, Forestry and Fisheries said it bought 30,000 tons of Canadian durum wheat today in a tender under the so-called simultaneous buy and sell system, introduced to loosen government controls over imports.
Orders Rise
Overseas orders for U.S. supplies are up 86 percent since June 1 compared with a year earlier, U.S. Department of Agriculture data shows. Unfavorable weather has damaged crops in major producers including Australia, Europe, Russia and Ukraine.
Grain-growing regions in Australia, the world's third- largest wheat and canola exporter, may have warmer-than-average temperatures in spring, potentially crimping crop development.
There's a 60 percent to 75 percent chance of higher-than- average minimum temperatures from September to November, the bureau of meteorology said on its Web site today. The chance of above-than-average maximum temperatures is as high as 60 percent.
Soybeans for November delivery gained for a third day, rising as much as 3.75 cents, or 0.4 percent, to $8.5075 a bushel, before trading at $8.48 at 4:31 p.m. Singapore time
Soybean crops sampled in Illinois, the second-largest producing state, were in worse condition than a year ago with reduced pod counts and advanced maturity, according to findings from the annual John Deere Pro Farmer Midwest Crop Tour.
Crop Tour
Tour participants this week also estimated yields in Indiana, the fourth-largest soybean-growing state, and Ohio will be lower than last year.
Corn for December delivery fell 0.1 percent to $3.64 a bushel at 4:33 p.m. Singapore time after gaining 2.6 percent yesterday on speculation yields may be lower than expected following inadequate rain in the eastern Corn Belt in the past two months.
A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.
