The waves of grain on David Schemm’s 5,000 acres planted in west-central Kansas are beginning to turn brown after the driest March in Kansas since 1997 hurt crops.
It’s been a double-whammy winter for wheat farmers in the U.S., the world’s largest exporter.
Wheat futures fell the most in four weeks on speculation that favorable weather will boost crop prospects in Australia and the U.S., the world’s top exporter. Corn and soybeans closed unchanged.
Urkaine’s escalating turmoil is signaling that grain buyers may be forced to import more from the U.S. as corn prices rally to a six-month high.
Corn futures plunged the most since January after the U.S. said supplies left from last year’s crop climbed to the highest level since 2006.
Wheat futures rose to a two-month high after a government report showed improved U.S. sales to China and Brazil. Corn also advanced, while soybeans declined.
Ethanol’s discount to gasoline tightened to the narrowest in more than two weeks on below- average inventories for this time of year.
Corn posted the biggest gain in two weeks after the Federal Reserve announced a third round of stimulus measures to bolster the U.S. economy, improving prospects for grain demand as a drought erodes output.
Ethanol strengthened against gasoline for the first time in four days as the summer driving season neared while production costs rose.
Wheat futures fell for the third straight day on lingering concern that cheaper grain from Eastern Europe will erode demand for supplies from the U.S., the world’s top exporter.