Wheat price may start rising

The worst US drought since the 1930s Dust Bowl is damaging wheat crops across the world’s biggest supplier, at a time when hedge funds are the most bearish on prices in seven months.

About 62 percent of the country is mired in a dry spell that the government says will last at least until March in states growing the most winter wheat.

With dormant crops already in the worst condition since records began in 1985 and global inventories heading for a third annual drop, Chicago futures contracts may rise as much as 25 percent to $9.50 (R80) a bushel this year, the median of 32 analyst estimates compiled by Bloomberg shows.