Wheat Called Higher on Australian Supply Concerns; Corn, Soybeans May Rise

What follows are opening calls for U.S. grain and oilseed markets.

-- Wheat futures may open 9 cents to 12 cents a bushel higher on the Chicago Board of Trade, the Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that demand for milling-quality grain from the U.S. will increase as rains damage crops in Australia, said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago.

-- Corn futures are called to open 6 cents to 8 cents a bushel higher in Chicago on speculation that President Barack Obama will support extending U.S. ethanol-blending credits for two years, Grow said.

-- Soybean futures may open 12 cents to 15 cents a bushel higher on the CBOT on bets that rising U.S. government spending and reduced tax revenue will increase investment in commodities as a hedge against inflation, Grow said. Soybean-meal futures may open $2 to $3 higher per 2,000 pounds, and soybean oil is expected to open up 0.65 cent to 0.75 cent a pound.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net; Whitney McFerron in Chicago at wmcferron1@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

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