Wheat gained a second day to trim a weekly loss on speculation that the pace of exports from the U.S. will be sustained even as global supplies climb to a record.
The contract for December delivery gained as much as 0.8 percent to $6.9125 a bushel on the Chicago Board of Trade and was at $6.905 by 10:32 a.m. in Singapore. Prices are set to decline 0.3 percent this week, the first loss in five weeks.
Wheat has dropped 11 percent this year as global production may jump 8.2 percent to a record 708.9 million metric tons, the U.S. Department of Agriculture forecast last month. U.S. sales since June 1 jumped 38 percent from last year as of Sept. 19 and export licenses issued by the European Union climbed 71 percent, government data show. The USDA hasn’t updated data on its website this month because of the partial government shutdown from Oct. 1 through Oct. 16.
“Wheat will likely continue to be well supported for at least another four to six weeks as the U.S. and EU export pace remain elevated,” Ole Houe, director advisory services at Ikon Commodities Pty Ltd. in Sydney, said in an e-mail today. As the Australian “harvest ramps up and the export pace from here picks up, we may well see pressure come back on global prices.”
Australian farmers have started harvesting a 24.5 million-ton crop, 11 percent more than last year, the government estimates. Harvesting in central Queensland is about 50 percent complete and may start early this year in central New South Wales, GrainCorp Ltd. (GNC) said Oct. 14.
Soybeans for November delivery fell as much as 0.4 percent to $12.8875 a bushel and were at $12.93, set for the first weekly gain in three. Corn for delivery in December was unchanged at $4.43 a bushel, also set for a weekly advance.
To contact the reporter on this story: Phoebe Sedgman in Melbourne at email@example.com
To contact the editor responsible for this story: Jake Lloyd-Smith at firstname.lastname@example.org