Wheat advances as Russian wheat export ban extended, nurturing hopes for robust US sales

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Wheat prices advance on extended Russian ban

Wheat prices advanced Thursday after Russia extended its export ban on the crop until next year’s harvest, nurturing hopes of more robust U.S. sales of the grain to other countries.

Wheat for December delivery rose 5 cents Thursday to settle at $7.1375 a bushel, after hitting a two-year high earlier this month when the Russian ban was imposed.

Russian Prime Minister Vladimir Putin said he extended the ban to make sure the crops have recovered after a devastating drought and wildfires destroyed about 20 percent of this year’s crop. The ban also covers wheat flour, barley, rye and corn.

In addition, concerns remain about fall planting in Russia because of a lack of rainfall. Northstar Commodity analyst Jason Ward said planting is under way in northern Russia but the larger-producing region to the south still needs rain.

Russia was the world’s third-largest exporter of wheat in 2009. The ban on Russian exports has sent its buyers to new sources, such as the United States, Ward said.

In other trading in grains contracts, December corn rose 0.75 cent to settle at $4.475 a bushel and November soybeans rose 3.5 cents to $10.090 a bushel.

Other commodities settled higher as economic reports on jobs, housing and manufacturing continued to show slower growth.

The Labor Department said first-time claims for unemployment benefits fell slightly last week, but were above levels that would indicate a healthy economy.

The National Association of Realtors said the number of Americans who signed contracts to purchase homes rose 5.2 percent, although the overall market remains weak.

In addition, factory orders rose 0.1 percent in July.

In industrial metals contracts, copper for December delivery added 1.8 cents to $3.4955 a pound; September palladium rose $5.10 to settle at $523.45 an ounce and October platinum gained $15.80 to $1,551.50 an ounce.

December gold gained $5.30 to settle at $1,253.40 an ounce and silver rose 28.2 cents to $19.672 an ounce.

In Nymex trading in October contracts, benchmark crude rose $1.11 to settle at $75.02 a barrel; heating oil rose 2.12 cents to $2.0623; gasoline gained 3.25 cents to settle at $1.9216 a gallon and natural gas lost 1.1 cents to settle at $3.751 per 1,000 cubic feet.