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Last Updated: Thursday, 28 February 2008, 17:48 GMT
Rogue wheat trader costs $141.5m
Kansas wheat farm
The rogue wheat trades come amid soaring wheat prices
A rogue trader dealing in wheat future contracts has caused his company more than $140m (70m) in losses.

Trading giant, MF Global, said it detected unusual trades at one of its US offices on Wednesday.

It found that an employee had been taking large, unauthorised bets on the direction of wheat prices, which cost the company $141.5m to reverse.

MF Global sacked the trader and said that systems designed to stop such unauthorised trading had failed.

MF Global shares plunged on the New York Stock Exchange.

The losses come amid volatile conditions in the wheat market, with wheat prices reaching record highs earlier in the week.

Prices have more than doubled over the past year as the world's farmers have struggled to meet demand.

MF Global's announcement comes after last month's huge losses at Societe Generale.

It blamed trader, Jerome Kerviel, for the $7.4bn in loss.

SEE ALSO
Fresh records for price of wheat
26 Feb 08 |  Business
Cereal prices hit poor countries
14 Feb 08 |  Business
UN warns on soaring food prices
17 Dec 07 |  Special Reports
Wheat breaks through $10 a bushel
17 Dec 07 |  Business
Sowing the seeds of farming's future
13 Nov 07 |  Science/Nature
Counting the cost of wheat price hike
21 Sep 07 |  Special Reports

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