Wheat Prices on the Rebound
Adverse weather in Canada, Europe and Russia has pushed the price of wheat sharply higher in the past week, as the once high-flying commodity rallies from recent depressed lows.
Like crude oil and other commodities in 2008, the price of wheat (
ZW-FT548.5018.003.39%)spiked to extremely high levels during the months before the credit crisis hit. Since then, beyond short rallies, the price of wheat has plunged as supply has risen.
But bad weather in major wheat producing regions – heavy rain in Saskatchewan, severe hot and dry weather in Russia and Kazakhstan – has stirred buying interest among investors. The latest surge has also been amplified by investors who had bet wheat prices would keep falling but who are now buying futures contracts to cover their short bets.
Read full article
here