Thu Sep 6th, 2007 at 10:08:16 AM EST
Devilstower has a good article up over at Daily Kos "Wheat feels the heat" worth checking out. I went and looked at the Dow Jones link and found this:
NEW YORK -(Dow Jones)- Wheat futures bolted to fresh record highs Tuesday and closed limit-up in many contracts amid fears that drought may slash Australian production for the second year in a row, analysts said.
Unexpectedly large purchases from India also boosted wheat prices, analysts said.
Nearby Chicago Board of Trade September wheat traded as much as 43 cents higher during the day session and set an all-time high of $8.10 a bushel. That exceeded the previous intraday high of $8.05 a bushel. The contract, exempt from the typical 30-cent trading limit because it is in delivery, closed up 40 cents at $8.07 a bushel.
Most-active CBOT December wheat closed limit-up, or 30 cents higher, at $8.05 1/2 a bushel.
Hmm...peak wheat! For many countries, this could be seriously bad news...
Devilstower starts with this:
In yesterday's commodity trading, wheat closed at record highs. Why is wheat shooting up? Because a hot, dry wind in Australia threatens to strip the last drop of moisture from fields that are already hurting for rain. At the same time, several other countries in the Southern Hemisphere have turned from wheat exporters, to wheat importers. But if today's trading was focused on problems in the south, that's not the only place where rains have been sporadic in the last couple of years. Wheat growing areas in many northern countries, including Eastern Europe and the United States, have faced unusually hot and dry weather.
Peak wheat...peak du jour...