Wheat futures rose for the second straight day on speculation that the U.S. will lower its forecasts for global supplies as dry weather damages crops from Russia to Australia. Soybeans declined.
Global wheat supplies before next year’s Northern Hemisphere harvest may be 172.77 million metric tons, down 2.2 percent from the U.S. Department of Agriculture’s estimate in September, according to analysts in a Bloomberg survey. Today, Russia cut its forecast for grain exports, and Australia last month reduced its harvest projection.
“Fundamentals are still bullish,” said Kieran Walsh, an agricultural-derivatives broker at Aurel BGC in Paris. “It would not be entirely unexpected for the USDA report to cut global production outlook, and Russian exports were at the lower end of estimates.”
Wheat futures for December delivery rose 0.4 percent to settle at $8.6425 a bushel at 2 p.m. on the Chicago Board of Trade. The price gained 0.4 percent yesterday.
The USDA will update its forecasts on supply and demand on Oct. 11. Last year, the U.S. was the world’s top exporter, followed by Australia and Russia. The price has jumped 32 percent this year.
Soybean futures for November delivery fell 0.1 percent to $15.50 a bushel. Earlier, the price reached $15.74, the highest for a most-active contract since Oct. 1.
Corn futures for December delivery were unchanged at $7.42 a bushel. Earlier, the price gained as much as 0.9 percent.
In the U.S., corn is the biggest crop, followed by soybeans, hay and wheat.