Wheat futures rose in Chicago for a third straight day on speculation that demand is increasing after the grain became a cheaper alternative to corn for cattle rations on U.S. feedlots.
Corn is selling at a premium of 43.5 cents a bushel over wheat at grain terminals near Kansas City, compared with a discount of $1.32 on Nov. 8, government data show. Wheat futures fell 8.3 percent this month as snowstorms in the Great Plains eased concern that drought would hurt crops in the U.S., the world’s biggest exporter.
“We’re seeing a lot of feeding out here” of wheat as prices fell, Darrell Holaday, the president of Advanced Market Concepts in Wamego, Kansas, said by telephone.
Wheat futures for delivery in May rose 0.4 percent to settle at $7.145 a bushel at 2 p.m. on the Chicago Board of Trade. Prices on Feb. 26 touched $6.9775, the lowest for a most- active contract since June 25.
U.S. wheat exports totaled 584,708 metric tons in the week ended Feb. 21, up 13 percent from a week earlier, the Department of Agriculture said in a report today.
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