Wheat prices rise sharply

Wheat prices rise sharply

CHICAGO (Reuter): U.S. wheat prices soared to 15-year highs last week but countries may be lining up to buy more before the grain becomes even more expensive.

Algeria, Brazil, Egypt, Indonesia, Morocco, and the Philippines are a few of the countries mentioned by U.S. exporters and analysts as potential buyers.

"You may be in a situation where it will be a rally in prices that scares them to the table," said Charlie Sernatinger, vice president of Chicago grain sales for Man International.

As wheat supplies shrink worldwide, Sernatinger said $6-per- bushel wheat prices may be needed to slow exports.

Some grain exporters said demand for U.S. wheat may already be easing, with top prices seen reaching somewhere in the $5.40- to $5.75-per-bushel area, basis Chicago Board of Trade March or May futures. CBOT soft red winter wheat for March delivery climbed to a 15-year high of $5.33 a bushel Wednesday. On Friday, that contract closed at $5.23-1/4.