Wheat Rallies on Expectations of Smaller Supply
Wheat prices rose today on speculations that the US Department of Agriculture will cut its forecast for global production. Russia decreased today its estimates for wheat exports, while last month Australia cut its predictions for the harvest. The USDA will release its report on October 11 and analysts expect it to show that world supply will be 172.77 million metric tons, 2.2 percent lower than in last month’s estimate.
Wheat also followed other commodities to the upside after China injected money in its economy. Traders looked favorably on that action and felt in mood to buy riskier assets.
Wheat advanced $0.0450 (0.52 percent) to $8.6550 per bushel as of 20:00 GMT on CBoT today. The prices for the grain have rallied 32 percent so far.
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