Wheat rose in Chicago, heading for a first weekly climb in seven, on speculation demand for the grain to feed livestock will strengthen after corn prices rebounded.
Corn is up 8.2 percent this month in Chicago trading as consumers increase purchases after prices fell 23 percent last month. Rising corn prices make wheat a more attractive source of feed for cattle, hogs and poultry. Wheat has gained 2.3 percent in October.
“We’re seeing some commercial demand at these levels” for wheat, said Erin FitzPatrick, an analyst at Rabobank International in London. “Even though cheap Black Sea wheat is bearish, corn prices continue to give support to wheat.”
Wheat for December delivery advanced 5.25 cents, or 0.8 percent, to $6.2325 a bushel by 12:09 p.m. London time on the Chicago Board of Trade. Prices are up 2.6 percent this week. Milling wheat for November delivery traded on NYSE Liffe in Paris rose 1 percent to 184.75 euros ($254.73) a metric ton.
Corn for December delivery climbed 2.75 cents, or 0.4 percent, to $6.41 a bushel in Chicago. The grain is up 6.8 percent this week, headed for a second straight increase and the biggest since the week ended July 15.
Soybeans for November delivery gained 5.5 cents, or 0.4 percent, to $12.625 a bushel. The oilseed is up 9 percent this week, on course for a first advance in six and the biggest weekly gain since December 2008.
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