Wheat dropped for the second time this week as rain in the U.S., Russia and Ukraine boosted crop prospects and investor appetite waned after U.S. Federal Reserve minutes showed it may hold off more monetary stimulus.
Showers in the central and southern plains in the U.S. and the winter-wheat areas in Russia and Ukraine will help maintain soil moisture, aiding crop development, Telvent DTN Inc. said in a report yesterday. Minutes of the March 13 Fed policy meeting showed it was holding off on increasing monetary accommodation unless the U.S. economic expansion falters or prices rise at a rate slower than its 2 percent target.
“U.S. weather conditions are favorable for the wheat crop,” Adam Davis, a commodity trader at Melbourne-based Merricks Capital Services Pty., said in an e-mail today. “Risk- off sentiment is also affecting all commodities.”…http://www.bloomberg.com/news/2012-04-04/wheat-declines-as-rains-in-u-s-russia-improve-crop-prospects.html