Wheat Seen Rising 4.5% as Corn Surge Spurs Livestock-Feed Swap
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The costliest corn in more than two years means livestock producers will feed animals more wheat, strengthening demand just as stockpiles shrink the most since 2007 and driving prices 4.5 percent higher in three months.
Wheat traded on the Chicago Board of Trade will jump to $8.60 a bushel as corn rises 4.3 percent to $8 a bushel, exceeding the record $7.9925 set in June 2008, according to Jonathan Bouchet from OTCex Group, a Paris-based brokerage. Wheat rose as much as 14 percent in the month after the Geneva-based analyst predicted a surge in January.