Wheat climbs as Chinese crops face drought

Wheat futures jumped to their highest levels in more than two years in trading on Wednesday as demand climbed and droughts threatened crops in China, the world's biggest grower.Wheat futures jumped to their highest levels in more than two years in trading on Wednesday as demand climbed and droughts threatened crops in China, the world's biggest grower.

In the past year, wheat futures have surged 83 percent in Chicago as inclement weather around the globe hurt crops in Australia, Russia and Canada - three of the world's most important wheat-growing nations. Moreover, countries in North Africa and the Middle East are quickly increasing their grain purchases as governments fear rising food prices could spur instability and political unrest. China also faces severe droughts in its main winter-wheat growing region, fueling investor worries.In the past year, wheat futures have surged 83 percent in Chicago as inclement weather around the globe hurt crops in Australia, Russia and Canada - three of the world's most important wheat-growing nations. Moreover, countries in North Africa and the Middle East are quickly increasing their grain purchases as governments fear rising food prices could spur instability and political unrest. China also faces severe droughts in its main winter-wheat growing region, fueling investor worries.

Han Sung Min, a broker at Korea Exchange Bank Futures, told Bloomberg "wheat is at the center of issues for the market now." He said that latest news out of China exacerbated market problems. "China's poor crop weather has fueled concern over tightening supplies after some countries in North Africa and the Middle East rushed to secure food," he affirmed.Han Sung Min, a broker at Korea Exchange Bank Futures, told Bloomberg "wheat is at the center of issues for the market now." He said that latest news out of China exacerbated market problems. "China's poor crop weather has fueled concern over tightening supplies after some countries in North Africa and the Middle East rushed to secure food," he affirmed.

Wednesday on the Chicago Board of Trade, wheat for March delivery climbed 1.7 percent, or 14.75 cents, to trade at $8.890 per bushel.  Wednesday on the Chicago Board of Trade, wheat for March delivery climbed 1.7 percent, or 14.75 cents, to trade at $8.890 per bushel.