Wheat’s Drought Battle and Surging Demand: Why Prices Are Flying
- Dry weather hurts plantings for next crop in Russia, U.S.
- Strong demand keeps inventories in top shippers relatively low
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From Russian farmers literally steamrolling seeds into parched fields to China’s rising demand, the reasons for wheat’s rally to a six-year high keep growing.
With farmers in the U.S. to Black Sea battling drought, the poor plantings start is raising worries that the market could further tighten. That’s happening at a time when importers are building reserves to safeguard supplies, prompting fund managers to turn more bullish.