Wheat Reaches Record as Ukraine Limits Exports After Drought

Bloomberg reports:

Wheat futures in Chicago rose to a record, extending the rally for a sixth day, after Ukraine said it will restrict grain exports and as importers buy more of the commodity, boosting demand for U.S. supplies.

Ukraine plans to limit shipments from Nov. 1 to March 31 to cap domestic prices. Pakistan and Jordan each plan to buy 100,000 metric tons. Morocco plans to buy 133,450 tons of soft milling wheat from any origin at a tender Sept. 28. The U.S. has projected global inventories will fall to the lowest in 26 years.

``The supply situation is critical,'' said Louise Gartner, owner of Spectrum Commodities in Beavercreek, Ohio. ``There are few things you can substitute for wheat. You can always use other grains for livestock feed, but not as a food grain.''

Wheat for December delivery rose as much as 16.50 cents, or 1.8 percent, to $9.3375 a bushel on the Chicago Board of Trade and traded at $9.3175 in after-hours electronic trading at 8:23 a.m. Singapore time. The contract gained 3.4 percent yesterday. Futures have more than doubled in the past 12 months.

Here's the wheat chart.