Wheat, Corn, Soybean Prices Rise Sharply

Townhall reports:

Wheat, corn and soybean prices saw sharp gains Monday in mostly thin trading due to the Columbus Day holiday.

On the Chicago Board of Trade, wheat futures were propelled by global supply concerns and climbed to exchange-imposed price ceilings. Analysts said short contract holders were scrambling to get out of the market.

December, March and May Chicago Board of Trade wheat ended limit-up, 30 cents higher, at $4.94 a bushel, $5.0750 a bushel and $5.0450 a bushel, respectively. December and March Kansas City Board of Trade settled limit-up at $5.3175 a bushel and $5.44 a bushel, respectively. December Minneapolis Grain Exchange Wheat was up 30 cents at $5.0975 a bushel.

A key catalyst for the rally, analysts said, was news that drought in Australia could drive its wheat production down by almost two-thirds. The Grains Council of Australia said Monday that fields could yield about 10 million metric tons, down from 25 million tons last crop year.

DTN Meteorologix said any rain in Australia during the next seven days will be scattered thundershowers confined to the western wheat belt.

"It is a full-blown disaster there," said Louise Gartner, an analyst with Spectrum Communications.

Check out this wheat chart.How many locals in the Wheat pit at the CBOT got whacked?