Wheat Advances in Paris as U.S. Legislators Reach Budget AccordWhitney McFerron
Wheat rose in Paris as commodities gained amid speculation demand will improve after U.S. lawmakers reached an accord to avert the so-called fiscal cliff of spending cuts and tax increases.
The Standard & Poor’s GSCI Index of 24 raw materials touched the highest level since Dec. 3 and the dollar slid after the U.S. House of Representatives passed a bill preventing income taxes from rising for most workers in the country. The U.S. is the world’s biggest wheat exporter and fourth-largest consumer of the grain, after China, the European Union and India, as well as the leading shipper of corn and soybeans.
“The markets have been jumping up and down quite a lot lately, mostly on fiscal-cliff concerns,” Leo von Kameke, a Bartlow, England-based analyst at Offre et Demande Agricole, said in a telephone interview. Prices were supported today because “the biggest economy in the world is not necessarily going into a recession now, so it seems they’ve fixed the problem for the short term.”
Milling wheat for delivery in March climbed 1.5 percent to 252.50 euros ($335.19) a metric ton at 1:44 p.m. on NYSE Liffe in Paris. Prices rose 27 percent in 2012 as drought cut grain supplies from the U.S. to Russia. Agricultural trading was closed yesterday for New Year’s Day. Grain and oilseed markets on the Chicago Board of Trade are scheduled to reopen at 9:30 a.m. local time today.
Rapeseed for delivery in February advanced 1 percent to 461 euros a ton in Paris, extending last year’s 4.1 percent increase. Corn for delivery in March added 1 percent to 241.25 euros a ton. Feed wheat for delivery in May rose 0.8 percent to 211.85 pounds ($345.36) a ton on NYSE Liffe in London.