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Wheat moves again

Agriculture.com Staff 11/29/2007 @ 1:17pm

The market is still waiting for some part of the world to grow a decent wheat crop. The two main southern hemisphere suppliers, Australia and Argentina, have both had their share of difficulties. The drought in Australia which severely cut supplies and the freeze in Argentina have kept the wheat market on edge.

The declining wheat condition in the U.S. seems to magnify the concern. After a $2.00 break in the market, prices have rallied $1.00-1.20. Even new crop wheat prices, which never really broke during October, have rallied $.70-1.00.

So the wheat cannot shake supply concerns. The soybean market has the opposite issue, it cannot shake demand concerns. The Chinese buying of recent weeks has many analysts re-calculating their supply/demand tables to accommodate larger exports. The market knows the situation will be tight. The market is dialing in larger acreage in the U.S. Still, the worldwide soybean crop in 2008 may not be able to keep up with demand for protein, cooking oil and biodiesel.

The market is still waiting for some part of the world to grow a decent wheat crop. The two main southern hemisphere suppliers, Australia and Argentina, have both had their share of difficulties. The drought in Australia which severely cut supplies and the freeze in Argentina have kept the wheat market on edge.

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