Wheat rose for a second day in Chicago on concern rain in the U.S. and France came too late to reverse crop damage in the two largest exporters amid rising demand for feed substitutes for corn.
Forecast thundershowers were unlikely to help winter wheat from southern Kansas southward recover from drought stress, Telvent DTN Inc. said June 10. France’s crop has suffered irreversible damage from the country’s driest spring in half a century, and rain in past days came too late to restore yields, farm adviser Offre et Demande Agricole said June 10.
“The supply condition in the world is not that optimistic,” Ker Chung Yang, an analyst at Phillip Futures Pte, said by phone from Singapore today. Concern about dry weather curbing output in some of the world’s largest wheat shippers outweighed optimism about Russia’s return to the export market, he said.
Wheat for July delivery gained 3.5 cents, or 0.5 percent, to $7.6275 a bushel by 1:15 p.m. Paris time on the Chicago Board of Trade, paring an advance of as much as 1.4 percent.
French soft-wheat yields this year may slide 15 percent because of drought damage to plants, cutting the harvest by 13 percent to 30.9 million metric tons, the lowest in four years, crops office FranceAgriMer said June 8.
Milling wheat for November delivery traded on NYSE Liffe in Paris dropped 2.75 euros, or 1.2 percent, to 228.50 euros ($328.76) a ton.
In the U.S. northern plains, showers and thunderstorms will continue to delay spring-wheat and corn planting, according to the DTN forecast.
About 79 percent of the U.S. spring wheat crop was sown as of June 5, behind the year-earlier 97 percent pace and the 98 percent rate for the past five years, the Department of Agriculture said June 6. About 94 percent of the corn crop was planted, compared with 99 percent a year earlier and a five-year average of 98 percent, it said.
Wheat futures were 40.5 cents a bushel cheaper than corn at the close on June 9 in Chicago, the biggest discount measured by the most-active contract for both grains since at least 1959. The USDA forecast on June 9 that 220 million bushels of wheat would go to feed and residual use this year, up 29 percent from a year earlier.
Corn for December delivery fell 6 cents, or 0.8 percent, to $7.065 a bushel. November-delivery soybeans declined 3.5 cents, or 0.3 percent, to $13.7825 a bushel.
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