Feb. 12 (Bloomberg) -- Wheat fell to the lowest price in almost three months, erasing earlier gains, on speculation that rain will improve prospects for drought-stressed crops in China, the world’s largest producer of the grain.
Rain is expected today and tomorrow and will fall for three days starting Feb. 15, alleviating the worst drought in five decades, the China Meteorological Administration said in an e- mailed report today. The area suffering from drought conditions has shrunk 25 percent since its peak, Wei Chaoan, vice minister of agriculture, said today.
“China did get a little rain in the past 24 hours,” said Jamey Kohake, a broker at Paragon Investments in Silver Lake, Kansas. “Probably enough to buy them some time, but not enough to give them a bumper crop.”
Wheat futures for March delivery fell 4.5 cents, or 0.8 percent, to $5.3875 a bushel on the Chicago Board of Trade, after earlier reaching $5.36, the lowest for a most-active contract since Dec. 16. The price has tumbled 60 percent from a record $13.495 on Feb. 27. Futures earlier gained as much as 1.7 percent after a government report showed increased U.S. export sales. more...
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