BLBG:Wheat Futures Rise in Record Paris Rally as South America Stays Hot, Dry
Milling wheat futures rose for a 12th day in Paris, the longest rally for the most-active contract since the grain started trading in the French capital in 1999, amid concern dry weather will hurt grain crops in South America.
Parts of Argentina and southern Brazil were expected to have more dry and hot weather early this week, leading to crop stress for corn and soybeans, AccuWeather Inc. said in a Dec. 30 forecast. Argentina is the world’s second-largest corn exporter after the U.S.
“The markets are again demonstrating firmness, still in a context of a very dry weather situation for the South American continent,” Agritel, a Paris-based farm adviser, wrote in a note today. “There’s little change expected in Argentina this week, with high temperatures and little or no precipitation.”
March-delivery wheat advanced 1.3 percent to 197.75 euros ($256.03) a metric ton on NYSE Liffe at 12:24 p.m. in Paris, rising 12 percent over a 12-day period. Wheat fell 23 percent in the French capital last year, the biggest slide in three years.
Commodity trading on the Chicago Board of Trade is closed today for the New Year’s holiday.
Rapeseed for February delivery added 0.4 percent to 440 euros a ton, while corn for March delivery climbed 1 percent to 199.25 euros a ton.
To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
