Wheat futures rose the most in two weeks on indications that U.S. livestock are feeding on more of the grain. Corn advanced, ending the longest slump in 47 years, and soybeans gained.
Yesterday, wheat at terminals in Kansas City sold at a premium of 5 cents a bushel versus corn, down from 9 cents a day earlier, U.S. Department of Agriculture data show. In the southern Great Plains, wheat is added to animal feed when the premium narrows because the grain has a higher content of protein. The government on Feb. 8 forecast that 375 million bushels will be fed to livestock in 2013, more than double the prior year.
“There’s significantly more wheat being fed than I thought,” Darrell Holaday, the president of Advanced Market Concepts in Wamego, Kansas, said in a telephone interview. “Wheat feeding is moving from Oklahoma into west Texas. We’re starting to see that in the USDA reports.”
Wheat futures for May delivery climbed 1.1 percent to settle at $7.485 a bushel at 2 p.m. on the Chicago Board of Trade, the biggest gain for a most-active contract since Jan. 30.
Export sales by the U.S., the world’s biggest shipper, more than doubled to 706,252 metric tons in the week ended Feb. 7 from a week earlier, the USDA said yesterday. Egypt, the top importer, bought U.S. grain in both of its tenders this year.
Corn futures for May delivery advanced 0.6 percent to $6.97 a bushel in Chicago. The price dropped in the previous 10 sessions, the longest slump since July 1965.
Soybean futures for May delivery rose 0.4 percent to $14.1475 a bushel.