Modest gains for USA wheat price

By Joanna Levin

STATESIDE wheat prices have managed to extend the modest gains posted since the start of August following a tightening of available supplies.

The Government last week revised downward its 1998/99 carryover estimate and Egypt recently purchased 250,000 tonnes of white wheat from the USA, which further encouraged market sentiment.

But analysts warn that the market is still burdened by oversupply. Grain elevators in Kansas are overflowing and the situation is likely to worsen in September as farmers try offload their crops.

The spring wheat crop is well advanced thanks to favourable weather over recent months. More than 31% of the spring wheat crop is harvested, well ahead of the 9% this time last year and the five-year average completion rate of 10%.

The Chicago September futures contract settled yesterday (Wednesday) at 258¢/bushel, down 0.25¢ on the day but up 3¢ on the week.