Wheat Futures Rise to Record on Global Demand, Supply Concerns

Bloomberg reports:

Wheat jumped to a record in Asian trading on signs of increasing demand for dwindling global supplies and mounting concern over crop conditions in Australia.

Egypt, the world's second-largest importer of the grain, Iraq, India, Korea and Taiwan have all bought the commodity this week, while Japan said it also plans to purchase wheat. South Australia, the nation's third-biggest wheat producing state, said today output of the grain may be 24 percent less than earlier forecast.

Wheat prices have more than doubled in the past year as rising consumption erodes global inventories to a 26-year low. Futures for December delivery rose as much as 13.50 cents, or 1.6 percent, to $8.49 a bushel on the Chicago Board of Trade in after-hours electronic trading today. The contract was at $8.44 a bushel at 11:49 a.m. in Sydney.

Here's a chart.