Wheat Rises as U.S. Export Demand Gains After Price SlumpTony C. Dreibus
Wheat fell for the third straight day on speculation that the U.S. Department of Agriculture tomorrow will say winter seeding from September through November surged to a four-year high.
Sowing in the U.S., the world’s biggest exporter, may have jumped 4.8 percent from a year earlier to 42.585 million acres, according to a Bloomberg News survey of 22 analysts. The USDA will release its planting report at noon in Washington tomorrow. Prices jumped 19 percent in 2012, increasing the incentive for farmers to seed the grain, said Jason Britt, the president at Central States Commodities Inc.
“Guys were thinking it’d rain sooner or later, so they took a chance” and increased wheat planting, Britt said in a telephone interview from Kansas City, Missouri. “It was the price at the time, and it was time in their rotation to plant wheat.”
Wheat futures for March delivery fell 0.1 percent to settle at $7.445 a bushel at 2 p.m. on the Chicago Board of Trade. Last quarter, the price tumbled 14 percent, the most since mid-2011, on prospects for improving supplies.
In the U.S., wheat is the fourth-largest crop, valued at $14.4 billion in 2011, behind corn, soybeans and hay, government data show.