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Wheat Rallies Amid Fears of Dry Weather

November 23, 2012 at 20:39 by Vladimir Vyun

Wheat futures advanced today on fears that drought in the United States will cause decline of supplies. The US Department of Agriculture reported that only 34 percent of winter wheat was rated good or excellent as of November 18. That was the worst result on record. The USA is not the only country that suffers from drought as Russia and Eastern Europe also experience dry weather.

Unfavorable weather cause speculations that output will drop, while winter is near. Additionally, specialists are worried that warm weather will cause crops to mature faster, making them vulnerable when colds will finally come.

March futures for delivery of wheat rallied $0.0225 (0.26 percent) to $8.6200 per bushel as of 20:36 GMT on CBoT today.

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