Wheat futures were witnessed to mark a rise for the second day on Wednesday. The main driver of the prices is drought in Russia that resulted in limiting exports in the country, thereby nudging investors and importers.
The starting of the month witnessed the wheat prices hit a two-year high level due to severe drought conditions in Russia that hampered over 20% of the grain exporter's harvest. The severe damage in Russia has forced it to drop all its exports for the rest of the year.
The ministry has outlined that Russia's total harvest of grains has landed to 40.1 million metric tons, including 28.5 million tons of wheat, recorded till August 18. Harvests attribute to over 54% of planted areas.
December-delivery wheat registered a jump 2.2% touching $7.0375 a bushel on the Chicago Board of Trade and stood at $6.995 at 10:36 a. m. Singapore time. However, the decrease managed to cover up touching $8.68 on Aug. 6, marking the highest level since Aug. 26, 2008.
"A great deal will depend upon whether we actually get rain in Russia, in Kazakhstan, in the eastern parts of Europe, where we're getting ready to put the winter wheat crop in for next year", quoted Dennis Gartman, an economist and editor of The Gartman Letter.