Wheat Rises on China Demand for U.S. Grain; Corn, Soybeans Fall
Wheat rose for the third straight session, heading for the longest rally in a month, on signs of improving demand for inventories from the U.S., the world’s biggest exporter. Corn and soybeans fell.
Exporters sold 120,000 metric tons of soft-red winter wheat, grown in the eastern Midwest and used in pastries and animal feed, to China for delivery in the 12 months that began June 1, the U.S. Department of Agriculture said in a statement today. On July 3, the USDA announced a sale of 360,000 tons of wheat to China.
“China’s always been the big player in soybean markets, and now they’re in buying wheat,” Jamey Kohake, a broker and branch manager at Paragon Investments in Silver Lake, Kansas, said in a telephone interview.
Wheat futures for September delivery climbed 0.1 percent to $6.6575 a bushel at 9:17 a.m. on the Chicago Board of Trade. A gain today would mark the longest rally since June 4. The price through July 3 dropped 15 percent this year on speculation that world production would increase. The market was closed yesterday for the Independence Day holiday.
Corn futures for December delivery fell 1.1 percent to $4.9725 a bushel in Chicago. The contract through July 3 was down 16 percent in 2013 on speculation that global growers will produce a record crop. Soybean futures for November delivery slid 0.4 percent to $12.46 a bushel on the CBOT.
Hot, dry weather is expected in the U.S. Midwest for the next six to 10 days, benefiting some corn and soybean plants that are behind normal development for this time of year because of cool, wet conditions, according to forecaster DTN. As much as six times the normal amount of rain has fallen in the past 30 days in parts of Iowa, Illinois and Indiana, National Weather Service data show.
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