Wheat Plunges as U.S. Report Shows Spring Acreage Increased
July 2nd, 2008Good news on the food front?! I had to post it.
Via: Bloomberg:
Wheat plunged the most in 10 weeks after a government report showed U.S. growers seeded more acres with spring crops to take advantage of prices that rallied to a record this year.
About 14.197 million acres were sown in April and May, up 6.8 percent from a year earlier, the U.S. Department of Agriculture said today in a report. Analysts surveyed by Bloomberg expected 14.312 million acres. Wheat futures have tumbled 35 percent from a record $13.495 a bushel on Feb. 27.
“When prices get that high, you find every nook and cranny to plant on,” said Darrell Holaday, the president of Advanced Market Concepts in Manhattan, Kansas. “This report sets a negative tone for the week.”
Wheat futures for September delivery fell 41 cents, or 4.5 percent, to $8.71 a bushel at 11:37 a.m. on the Chicago Board of Trade. A close at that price would be the biggest drop for a most-active contract since April 18. The price has still gained 50 percent in the past year after adverse weather curbed production in 2007.
