Grass-fed animal producers set to benefit from soaring international grain prices as weather plays havoc for foreign producers

Prices on overnight markets for wheat, corn and soybeans surged higher on weather fears in key growing areas, especially in the US.

Markets recorded an overnight spike of +2.1% for wheat futures on the Chicago commodity exchange, +1.8% for corn futures, and a sharply higher +2.9% for soybeans.

Some analysts described it as "panic" buying.

The main weather concerns are in the huge US grain heartland where recent rains in the corn and soybean areas is predicted to have little positive impact, by the USDA forecasters. Imminent US winter wheat plantings will be affected too.

But there are weather concerns in other markets too.

The UK grain harvest is not inspiring, and Russian and Western Australian crops are expected to be low. Only French and German harvests are at healthy levels.

Sharply higher grain prices will affect international prices for chicken, cattle and dairy. New Zealand's grass-fed production systems may benefit.

Meanwhile, cotton prices are rising too on crop yield concerns, with cotton futures gaining +3.3% overnight. This is despite there being huge inventories available. Higher cotton prices reduce the cost premium of wool.