Bloomberg News

Wheat Gains as Frost May Curb Ukrainian Production, Exports

February 15, 2012

Feb. 15 (Bloomberg) -- Wheat futures rose for the second time this week on speculation that freezing weather will curb Ukrainian production and exports.

Dormant crops in Ukraine, the world’s seventh-largest wheat exporter, endured “extreme cold weather” in the past three weeks, hurting plants that lacked protective snow cover, Telvent DTN said in a report yesterday. Ice at ports and in shipping lanes is slowing deliveries from the country, said Christopher Gadd, an analyst at Macquarie Group Ltd.

“The ports are frozen up, and moving grain around right now is a nightmare,” Gadd said by telephone from London. “There are massive issues that are limiting grain exports out of the region. You can’t see selling pressure come back to the wheat complex until you see the weather abate in the Black Sea region.”

Wheat futures for May delivery gained 0.3 percent to $6.4075 a bushel at 9:47 a.m. on the Chicago Board of Trade. Before today, prices were down 29 percent in the past year as output increased from India to Canada.

A cold front killed hundreds of people in eastern Europe in the last few weeks and disrupted shipping traffic on the Danube river.

--Editors: Steve Stroth, Thomas Galatola

To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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