Chicago grain prices hike as dollar tumbles

08:21, December 02, 2010      

Email | Print | Subscribe | Comments | Forum 

Chicago grain futures hiked Wednesday as U.S. dollar dropped, increasing the appeal of U.S. agricultural export in the overseas markets. Wheat jumped the most in seven weeks on speculations that the excessive rain in eastern Australia may pose a threat to crop quality and delay harvest in the world's fourth-largest wheat exporter.

The most active corn contract for March delivery surged 22.25 cents, or 4.1 percent, to 5.6625 dollars per bushel. March wheat futures hiked 49.5 cents, or 7.2 percent, at 7.4 dollars a bushel. January soybean rallied 40 cents, or 3.2 percent, to 12.83 dollars per bushel.

Market traders mainly attributed Wednesday's rebound to the loss in dollar. Dollar reversed gains as the euro regained strengths on speculation that the European Central Bank might take action to curb its recent losing streak.

A weaker dollar usually helps boost the competitive edge of U.S. grain export in the overseas market, thus drives up the price. Besides, market traders noted that funds were heavy buyers throughout the grains during morning session with support from the weaker dollar.

As for the wheat, a trader noted the persistent dry weather in the western U.S. Plains hard red wheat belt, as well as the weather forecast for additional precipitation in eastern Australia in the next two weeks, which will reduce grain quality and delay the harvest, were both considered very bullish for wheat prices.

Besides, a strong demand from Egypt, the world's largest wheat importer also helps buoy up the market. Egypt bought 55,000 tons of U.S. soft wheat and 165,000 tons of U.S. hard wheat. All of it is for shipment during Feb. 1-10.

Traders said that the potential deterioration of wheat quality in Australia spurred some panic buying Wednesday and the fact that all of the wheat was from the U.S. also offered a strong boost to wheat prices.

Source: Xinhua

(Editor:李佳)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion