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MTECHTIPS:-Grain futures steady; eyes on Ukraine wheat
U.S. grain futures were mostly steady during European morning hours on Thursday, with wheat prices consolidating below the previous session’s three-week high amid concerns over a disruption to supplies from Ukraine.On the Chicago Mercantile Exchange, wheat for December delivery traded at USD8.8338 a bushel, easing down 0.1%. The December contract held in a tight trading range of USD8.7900 a bushel, thje daily low and a session high of USD8.8788 a bushel.Front-month wheat prices rallied to USD8.9475 a bushel on Wednesday, the strongest level since October 1 after Ukraine's agriculture minister said the country would ban wheat exports from November 15.In 2010, Ukraine set quotas on grain exports after the worst drought in at least half a century damaged crops and reduced yields.
Ukraine is one of the world’s largest wheat exporters and competes with the U.S. for business on the global market. A disruption to supplies from the country could boost demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.Speculation that dry weather conditions in the U.S. Great Plains-region and in Australia will curb production at a time when global supplies are already on the decline also helped support prices.
U.S. grain futures were mostly steady during European morning hours on Thursday, with wheat prices consolidating below the previous session’s three-week high amid concerns over a disruption to supplies from Ukraine.On the Chicago Mercantile Exchange, wheat for December delivery traded at USD8.8338 a bushel, easing down 0.1%. The December contract held in a tight trading range of USD8.7900 a bushel, thje daily low and a session high of USD8.8788 a bushel.Front-month wheat prices rallied to USD8.9475 a bushel on Wednesday, the strongest level since October 1 after Ukraine's agriculture minister said the country would ban wheat exports from November 15.In 2010, Ukraine set quotas on grain exports after the worst drought in at least half a century damaged crops and reduced yields.
Ukraine is one of the world’s largest wheat exporters and competes with the U.S. for business on the global market. A disruption to supplies from the country could boost demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.Speculation that dry weather conditions in the U.S. Great Plains-region and in Australia will curb production at a time when global supplies are already on the decline also helped support prices.
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