Wheat prices advanced for a third day in Chicago, limiting the extent of a second weekly loss as falling supplies from Russia may boost demand for grain from the U.S. and the European Union.
December-delivery wheat rose as much as 1.1 percent to $8.9125 a bushel on the Chicago Board of Trade before trading at $8.8925 at 12:29 p.m. Paris time, set for a 1.3 percent weekly loss. Milling wheat for November delivery traded in the French capital rose 0.5 percent to 261.50 euros ($323.42) a metric ton.
Russia’s exportable grain surplus in the 2012-13 season may be 12 million tons, 1 million tons less than estimated two weeks ago, according to ZAO Rusagrotrans, the country’s biggest rail transporter of cereals. All the grain may be shipped by the end of 2012, the company estimates.
“Because of the expected decline in export availability from the Black Sea, wheat from U.S. and European origin should find a place of choice this season,” Paris-based farm adviser Agritel wrote in a market report today.
Russian grain stockpiles held by large agricultural producers, procurement companies and millers fell 15 percent from a year earlier as of Aug. 1, the government said.
December-delivery corn lost as much as 0.6 percent to $8.03 a bushel on the Chicago Board of Trade and was at $8.06 a bushel, poised for a 0.4 percent loss this week. Futures, which reached a record $8.49 on Aug. 10, are up 25 percent this year, after the worst drought in half a century parched crops.
U.S. export sales from the new harvest slumped to 130,602 tons in the week to Aug. 9, from 928,277 tons a week earlier, the Department of Agriculture said in a report yesterday. Sales of the old crop fell 30 percent, it said. The USDA on Aug. 10 said domestic corn output will drop 13 percent to a six-year low of 10.78 billion bushels this year.
Soybeans for November delivery rose 0.5 percent to $16.335 a bushel, heading for a weekly decline of 0.6 percent.