Wheat Falls in Chicago as Importers May Balk After Price Rally

Wheat fell for a second session in Chicago on speculation that consumers will balk at the highest prices in 23 months, after Russia imposed an export ban last week to preserve supply during a crop-damaging drought.

Prices last week more than doubled from this year’s low on June 9 as flood damaged crops in eastern Europe and Canada, and the drought worsened in Russia, the world’s third-largest grower last year. Speculators raised their net-long positions in wheat futures and options by the smallest increase since they turned bullish in July.

“The worst of the panic among importers may have peaked last week,” said Jim Gerlach, the president of A/C Trading Inc in Fowler, Indiana. “Prices are going to stay volatile until Russian export policies are clear. There is not a global supply shortage.”

Read Full Article from BusinessWeek

- Posted: 2010-08-09 21:42:50

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