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Wheat Advances on Concern of Dry Weather

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14 April 2008 @ 01:57 pm EST
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NEW YORK - Wheat gained on Monday amid concerns that warm and dry weather in the Great Plains may slow development of wheat crops in the U.S.

Wheat for July delivery increased by 0.7 percent or 6.75 cents to $9.1725 a bushel on the Chicago Board of Trade.

Wheat posted the highest gain on Feb. 27 when it increased as high as $13.495.

The National Weather Service forecast dry weather to start on Tuesday in some parts of Kansas and Oklahoma, the largest winter wheat producing states.

According to the National Weather Service data, the temperatures were forecasted to be as high as 86 degrees Fahrenheit (30 degrees Celsius) in southwestern Kansas near the Oklahoma border.

Wheat prices were also forecasted to drop on concern that the crop conditions in the eastern Midwest, will decline due to heavy rainfall that flooded the fields, damaging the crops.

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