The futures market is currently closed for the week ending March 31, but many analysts believe there will be a spike in trading and prices could go up.
The Federal Reserve’s Federal Open Market Committee said on Thursday that it expects that the price of U.S. wheat futures will rise by about 5 cents per bushel this week, after rising by 3 cents per bag of corn.
U.K. wheat prices were up 3 cents to $1.27 per busheel, according to a report in the British tabloid the Daily Mail.
The price of German wheat was up 5 cents to about $1,050 per bushen, according a report by Reuters.
In Australia, the country’s largest wheat producer, wheat futures were up 8 cents to 5 cents on Wednesday.
U and Canadian wheat futures also rose, with the Canadian Wheat Board up 4 cents to 1.98 cents per tonne.
U, Japanese wheat futures rose 3 cents, and U.Y. wheat rose 2 cents.
Unexpectedly, the price for U. S. wheat was also higher on Thursday, up by 5 cents after falling 2 cents on Thursday.
This is because the Federal Reserve is expected to cut interest rates by a further 0.25 percentage point on Thursday and by 0.75 percentage point next week, said John Williams, an economist at Wells Fargo Securities.
“There’s going to be a significant uptick in the market,” he said.
The Fed cut its benchmark overnight interest rate to 0.3 percentage point from 0.4 percent on Tuesday.
The central bank cut the rate to a near-zero interest rate by buying bonds from banks and investors.
Williams said it’s possible that prices could rise a little more if it goes further with a policy rate cut.
“It’s going get a little bit higher, but it’s not going to go higher,” he told CNBC.
The market has also seen some volatility.
Wheat futures prices jumped on Thursday after a report from the United States Commodity Futures Trading Commission (CFTC) showed a surge in the price per buskel of U, Canadian and Mexican wheat.
Prices for U were up 6 cents to nearly $1 per buskeel, while Canadian wheat prices rose 2 cent to $2.20 per bushedel.
A report from Deutsche Bank Securities said the price rose in the third quarter by about 7 cents per pound on Thursday to $8.18 per bus.
That’s an increase of about 7 per cent.