I don't trade it but found this article:
" Egypt had its Clavell moment on February 8 when the Food and Agricultural Organization warned that drought in China might require the world's largest wheat producer to import vast amounts of the grain, forcing the market price to levels never seen before."
"Not until June will we know the extent of the damage to China's winter wheat crop, virtually all its production. Extremely low rainfall this winter parched more than 5 million hectares of 14 million hectares planted, and the next few weeks' weather will determine if the world faces a real shortage of the staff of life.
Hoarding on the part of North African countries, starting with Algeria, has already pushed up the wheat price in the Mediterranean to a 20% premium over the price shown on the Chicago futures market. The immediate risk is that pre-emptive purchases of wheat will price the grain out of the reach of poor Egyptians, not to mention Pakistanis and Bengalis.
And if reserve-rich China, usually self-sufficient, goes into the world market to buy millions of tons of wheat, the price of wheat can rise to an arbitrarily high level."
" Egypt had its Clavell moment on February 8 when the Food and Agricultural Organization warned that drought in China might require the world's largest wheat producer to import vast amounts of the grain, forcing the market price to levels never seen before."
"Not until June will we know the extent of the damage to China's winter wheat crop, virtually all its production. Extremely low rainfall this winter parched more than 5 million hectares of 14 million hectares planted, and the next few weeks' weather will determine if the world faces a real shortage of the staff of life.
Hoarding on the part of North African countries, starting with Algeria, has already pushed up the wheat price in the Mediterranean to a 20% premium over the price shown on the Chicago futures market. The immediate risk is that pre-emptive purchases of wheat will price the grain out of the reach of poor Egyptians, not to mention Pakistanis and Bengalis.
And if reserve-rich China, usually self-sufficient, goes into the world market to buy millions of tons of wheat, the price of wheat can rise to an arbitrarily high level."
:eek: 
