CHICAGO (Dow Jones)--U.S. wheat futures are called to open firmer Monday on
strong electronic trading over the weekend and weather forecasts that show
little relief for parched areas of Australia and Argentina, sources said.
Benchmark Chicago Board of Trade December futures are called to open 17-20
cents higher a bushel.
In e-cbot trade, December wheat was 20 cents firmer at $4.84.
"There's no wheat," a floor source said.
Indeed, the Grains Council of Australia said Monday that drought could drive
the country's wheat production down by almost two-thirds, to less than 10
million metric tons from 25 million tons last crop year. In the face of a
possible domestic shortage of grain, Australia has received applications to
import a variety of grain types from a number of source countries, a government
spokeswoman said.
"Growers are telling us that in many instances, crop failure will mean they
simply won't be harvesting this year," with many crops being grazed by
livestock or cut for hay, Grains Council Chairman Murray Jones said in a
statement.