Wheat slumps on needed rains - Grain and Soy Review

US wheat futures ended lower Thursday, falling to two-week lows on forecasts for rains to reach some of the dry areas of the hard red winter wheat belt. Forecasts for some much needed rainfall in the southern Plains next week enticed traders to reduce risk exposure in wheat markets. Wheat for May delivery, the most actively traded contract, ended down 12 1/4 cents, or 1.6 percent, to US$7.40 1/2 a bushel at the Chicago Board of Trade.

Rains are forecast to hit some of the driest areas of the winter wheat belt this week, with another system expected to move into parts of the parched southern plains next week, said Tim Hannagan, analyst at PFG Best in Chicago. The market was focused on weather, led by the Kansas City hard red winter wheat contract, and despite the rains expected to miss some of the driest areas, it provided enough jitters to encourage traders to reduce some risk exposure. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine and International Milling Directory from Perendale Publishers