Wheat prices rise as investors worry about poor weather in Russia, Kazakhstan, Canada

Wheat prices climb on weather worries

NEW YORK — Wheat prices continued to rally Tuesday as investors grew increasingly concerned about adverse weather affecting production in Russia, Kazakhstan and Canada.

“It’s too wet in Canada and too hot and dry in Russia” and Kazakhstan, said Jason Ward, an analyst with Northstar Commodity in Minneapolis.

Those weather patterns are likely to hold for the near future, which could result in a smaller harvest this year in those locations, Ward said. In Canada, harvesting has been delayed because of the wet weather, he said. Wheat farmers around the globe are in the midst of their harvesting season.

A drop in production from foreign countries would send buyers into the U.S. market, helping to boost exports for domestic farmers. The potential for increased demand from U.S. producers helped push prices higher.

Wheat for September delivery rose 4.5 cents to settle at $5.075 a bushel.

It was the fourth straight day wheat prices have risen. Wheat has gained 11.1 percent during that stretch.

Despite the rise in wheat, corn and soybean futures fell. Corn contracts slid 4.5 cents to settle at $3.68 a bushel while soybeans fell 4 cents to $9.405 a bushel.

Metals with industrial uses got a boost after Australia’s central bank provided an upbeat outlook for the country’s economy, which is heavily reliant on exports of raw materials. Consistent growth there could signal that demand for materials remains high elsewhere in the world, particularly China, which is one of Australia’s biggest trading partners.

Copper for September delivery rose 5.5 cents, or 2 percent, to $2.971 a pound. Silver rose 13.8 cents to settle at $17.857 an ounce.

Palladium for September delivery rose $13.50, or 3.1 percent, to $440.40 an ounce, while October platinum rose $15.10 to settle at $1,518.70 an ounce.

Gold prices fell as traders moved into riskier assets like stocks and currencies. August gold fell $12.60 to settle at $1,195.10 an ounce. It was the first time since May 25 that gold has settled below $1,200 an ounce.

Energy prices mostly rose, but were off their highs for the day. Benchmark crude for August delivery fell 16 cents to $71.98 barrel on the New York Mercantile Exchange.

Among other August energy contracts, heating oil rose 0.17 cent to $1.9172 a gallon, while gasoline fell 0.64 cent to $1.9713 a gallon. Natural gas fell 0.5 cent to $4.682 per 1,000 cubic feet.