Wheat prices rose
March wheat futures trading on the CBOT (Chicago Board of Trade) rose by 0.66% and closed at $4.57 per bushel on March 7, 2016. Wheat futures prices rose due to unfavorable weather prospects hurting the supply consensus. The Teucrium Wheat Fund (WEAT) followed wheat prices on the CBOT. It rose slightly by 0.16% on March 7, 2016.
MDA Weather Services discussed the situation that wheat could face in near term in the key winter wheat producing regions in the Great Plains. Dry and warm weather could take a toll on the wheat plants. It would accelerate the need for moisture. The warm weather is projected to spread to the West-central and Southeastern regions in the Great Plains. The speculation of unfavorably dry conditions could hurt the output and the supply. This supported the wheat prices on March 7, 2016.
The U.S. Department of Agriculture released the Weekly Grains Inspection for the Export Report on March 7, 2016. The weekly wheat export inspections were 443,190 metric tons for the week ending on March 3, 2016. It was 17.7% higher than the prior week and 17.8% higher than the wheat export inspections during the same time last year. The current wheat export inspections are 17,374,203 metric tons year-to-date. This is 12.3% lower than the same period the previous year. Favorable export inspections supported the upward wheat price movement on March 7, 2016.
Saad Moussa, the head of the Egyptian Quarantine Agency, has been relieved from his position. As a result, the confusion surrounding the Egyptian wheat quarantine acceptance for the past few months has been resolved. A statement was released by the Agriculture Ministry. It stated the official policy allows imports with up to 0.05% ergot contamination. However, the credibility of the reestablished top wheat importer might take some time. Wheat exporting giants such as France, Russia, and the US could benefit.
Fertilizer companies stock
The rise in wheat prices helped fertilizer companies on March 7, 2016. The share prices of PotashCorp (POT), Intrepid Potash (IPI), The Mosaic Company (MOS), and Terra Nitrogen (TNH) rose by 1.5%, 30.6%, 2.6%, and 2.6% on March 7. The WisdomTree India Earning Fund (EPI) fell by 0.53% on March 7 with the rise in wheat prices on the day.