Futures soar amid Hungarys wheat gloom
THE spectre of a poor Hungarian wheat harvest has sent futures prices soaring on the Budapest Commodities Exchange.
The December future for quality milling wheat has risen 25% since the start of June to a peak of Ft29,530 ($150). Fodder prices meanwhile have tumbled to a low of Ft14,000.
Another complication is that the characteristics determining the quality of grain – protein and gluten levels – are failing to meet standards in product harvested so far. Exporters may have to mix wheat to satisfy contract requirements.
However, the Hungarian ministry of agriculture says total tonnage would probably be on target, although quality could well be poorer than normal.