Wheat jumped the most in two weeks on speculation that demand will increase from livestock producers as the cost of corn-based animal feed rose. Corn futures gained 4.5 percent today in Chicago, after touching a 23-month high on Sept. 20, as signs of U.S. economic growth spur demand for feed and crop-based fuel. Demand for wheat from the U.S., the world’s largest exporter, has increased this year after wet weather in Canada and the worst Russian drought in 50 years curbed global output. Wheat has rallied 50 percent since the end of June. “If you get a corn bounce, you get a wheat bounce,” said Darrell Holaday, the president of Advanced Market Concepts in Manhattan, Kansas. “I’m certainly not bearish corn, so I don’t see how you can get real bearish wheat for a while.” Wheat futures for December delivery rose 22.75 cents, or 3.3 percent, to close at $7.20 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain since Sept. 9. Corn futures for December delivery rose 22.5 cents, or 4.5 percent, to $5.2175 a bushel on the CBOT. On Sept. 20, the price reached $5.2375, the highest level since Sept. 30, 2008. A weaker dollar also helped boost grain prices by making U.S. exports more attractive to overseas buyers, and by boosting demand for alternative investments. The dollar slid as much as 0.9 percent to a seven-month low against a basket of six major currencies. “The dollar is supportive,” said Larry Young, the president of Covenant Trading LLC in Chicago. “It definitely makes our exports attractive. Some of this is covering before the end of month and the end of the quarter. I’d much rather close the quarter with a nice winning trade.” Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show. To contact the reporter on this story: Tony C. Dreibus in Chicago at tdreibus@bloomberg.net.

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