The September contract for US wheat gained by 4.2% yesterday to 527 US cents per bushel. The heavy rainfall in the US growing regions in the past few weeks has increased the risk of plant diseases, thereby lending renewed buoyancy to the price.
According to the US Department of Agriculture (USDA), harvesting of the US winter wheat crop is also lagging significantly behind schedule because of the heavy rain. So far, only 19% of the crop has been harvested, as compared with a five-year average figure of 31% for this time of year, notes Commerzbank.
According to the USDA, further rain could add to the delays to harvesting and thus lend additional support to the wheat price in our opinion.
