Wheat Prices Gain as Wet Weather in Canada Curbs Crop; Corn, Soybeans Rise
Wheat gained for the fifth time in six sessions as wet weather in Canada, the second-biggest shipper of the grain, may reduce planting to its lowest amount in almost four decades. Corn and soybean also rose.
Farmers in Canada may seed 19.15 million acres of wheat, the lowest since 1971 and 18 percent less than a year ago, the Canadian Wheat Board said in a report last week. Acres devoted to durum wheat will total 3.4 million, the lowest since 1980 and a 39 percent decline from last year, the CWB said.
“All this rain up in Canada is helping support wheat,” said Tomm Pfitzenmaier, a partner at Summit Commodity Brokerage in Des Moines, Iowa. “It’s hard for me to get too excited about crops getting ruined by rain, but this” is causing prices to rise, he said.
Wheat futures for September delivery rose 1.75 cents, or 0.4 percent, to $4.785 a bushel on the Chicago Board of Trade. The price has gained 12 percent in six sessions as wet weather curbed planting in Canada and delayed the harvest in the southern Great Plains of the U.S.
In Saskatchewan, the biggest grain grower in Canada, 73 percent of crops were seeded as of June 14, up from 70 percent a week earlier, the province’s Ministry of Agriculture said today. Excessive rainfall slowed planting and has stressed crops, the ministry said in a report.
Corn gained on speculation that China will buy more of the grain from the U.S., the world’s largest grower and exporter.
China, the world’s second-largest corn consumer, bought 120,000 tons from U.S. shippers, the USDA said June 14. The U.S. Grains Council said the Asian nation may purchase more than 1 million tons in the next 18 months.
Corn futures for December delivery advanced 1 cent, or 0.3 percent, to $3.7825 a bushel on the CBOT. The price has gained 13 percent since June 7, the last time the most-active contract settled lower.
Soybean futures for November delivery were little changed, gaining 0.5 cent to $9.25 a bushel in Chicago. The oil seed has lost 1.4 percent this month.