Sept. 26 (Bloomberg) -- Wheat futures rose for a fifth day on speculation purchases by importers may reduce global inventories that are expected to fall to a 26-year low.

Wheat has gained as adverse weather hurts crops in Australia, forecast by the U.S. Department of Agriculture to be the world's second-biggest exporter of wheat alongside Canada in the year ending May 31. Turkey, Pakistan, Iraq, Jordan and Japan are seeking to buy more than 1.1 million metric tons.

``There has been tender announcement almost every day amid growing concerns about wheat production in Australia following dry weather,'' said Takaki Shigemoto, an analyst at Okachi & Co. in Tokyo. ``This tells there is real demand for the grain and it pushes the market higher.''

Wheat for December delivery rose as much as 11.5 cents, or 1.3 percent, to $8.9875 a bushel and was at $8.9625 in after- hours electronic trade on the Chicago Board of Trade as of 4:35 p.m. Singapore time.

The contract gained 1.1 percent yesterday to $8.8725 a bushel after touching $9.05, the highest since reaching a record $9.1125 on Sept. 12, as harvest expectations in Australia were scaled back after dry weather reduced yields.

Farmers in New South Wales state, Australia's second- biggest producer, may harvest as little as 2.26 million metric tons because of drought, Frank McRae, a technical specialist in grains with the New South Wales Department of Primary Industries, said yesterday. McRae's department had estimated the crop at 4 million tons a month earlier.

The Australian Bureau of Agricultural and Resource Economics said last week the country will produce 15.5 million tons, 31 percent less than the bureau's June estimate.

Canada, Ukraine Droughts

Drought has also hurt crops in Canada and Ukraine, while excessive rain damaged plants in the U.S. and Europe. Jordan said today it plans to buy 100,000 tons of milling wheat at a tender on Oct. 9.

Japan plans to buy 64,000 tons of feed wheat on Oct. 3, the government said Sept. 21. Trading Corp. of Pakistan is seeking to buy 100,000 tons of wheat on Oct. 8, it said yesterday. Iraq plans to buy at least 50,000 tons and results will be announced by Oct. 18, the Grain Board of Iraq said Sept. 24.

Turkey's State Grain Board will import 800,000 tons of wheat, 300,000 tons of barley and 300,000 of maize, the official gazette reported yesterday. The Cabinet approved the imports and the grains will be purchased by the end of May 2008, according to the Ankara-based gazette.

Advance sales of U.S. inventories from June 1 to Sept. 13 more than doubled from a year earlier, the U.S. government said last week.

Wheat, valued at $7.7 billion in 2006, was the fourth- biggest U.S. crop, behind corn, soybeans and hay, according to U.S. government data.

Soybeans for November delivery were up 4.25 cents, or 0.4 percent, at $9.7725 a bushel at 4:34 p.m. Singapore time after trading between $9.705 and $9.7825.

Corn for December delivery fell as much as 3.5 cents, or 0.9 percent, to $3.6825 a bushel, extending losses to a third day, and traded at $3.71 at 4:27 p.m. Singapore time.

To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net

Last Updated: September 26, 2007 05:05 EDT