FX.co ★ Wheat Futures Rise Toward 9-Month High

Wheat futures climbed more than 2% to $6.07 per bushel, approaching the nine-month high of $6.16 reached on March 31, as mounting concerns emerged that drought-stricken crops in the US Plains could be exposed to frost this weekend. The region in question produces nearly one-third of total US wheat and represents a significant share of hard red winter wheat output. Earlier projections of rainfall had weighed on prices, but uncertainty over how much moisture will actually reach the driest fields, combined with the onset of colder weather, has revived supply worries. These concerns have been strong enough to counterbalance the downward pressure from ample global inventories and generally favorable growing conditions in other key producers. Traders are also monitoring potential disruptions to fertilizer shipments from the Gulf. In export news, US wheat sales totaled 231,300 metric tons for the week ended April 9, in line with expectations, with South Korea among the leading buyers.