Wheat may advance for a third day as dry weather threatens to hurt U.S. winter-wheat crop quality, slowing plant development. Rice declined, after climbing to the highest level in more than nine months. Wheat for December delivery climbed as much as 0.5 percent to $6.77 a bushel on the Chicago Board of Trade and was at $6.74 at 2:19 p.m. Singapore time. Futures rose as much as 2.3 percent yesterday after losing 4.8 percent last week, the second weekly drop. The grain has surged since the end of June after drought destroyed Russian crops, prompting the country to ban exports. About 47 percent of the U.S. winter-wheat crop was rated good or excellent as of Oct. 24, from 62 percent a year earlier, the U.S. Department of Agriculture said yesterday in its first crop progress report. About 88 percent of the crop was planted in 18 states, mostly in the Midwest and Great Plains, compared with 80 percent a week ago and 77 percent a year earlier. “The USDA report has shown worse-than-expected crop conditions for winter wheat and this would lend support to the grain market for the time being amid Russia’s export ban,” said Han Sung Min, a grain futures broker at Korea Exchange Bank Futures Co. in Seoul. “The dollar’s rally may limit gains.” The dollar was at $1.3974 per euro from $1.3965 yesterday, after touching $1.4159 on Oct. 15, the weakest since Jan. 26. Russia may harvest less than 70 million metric tons of grain next year if winter is severe and farmers face more hurdles in obtaining seeds and funding for spring sowing, the Institute for Agricultural Market Studies said yesterday. This year’s crop dropped 38 percent to 60 million tons after Russia’s worst drought in at least half a century. Wheat Crop An estimated 64 percent of the U.S. wheat crop had emerged as of Oct. 24, compared with 51 percent a week earlier and 64 percent on average in the previous five years, the USDA said. The crop will soon go dormant for the winter and be harvested starting in May. The department will release its estimates of winter-wheat planted acreage in January. Rough-rice for January delivery declined, reversing an earlier rise to the highest since Jan. 11. The contract dropped 0.4 percent to $14.90 per 100 pounds at 1:50 p.m. Singapore time. The staple food for half the world has jumped 56 percent from this year’s low on June 30 as global supplies were threatened by weather damage to crops in Pakistan and Thailand, which represent a combined 43 percent of global exports. Rice is $80.55-a-ton more expensive than wheat, after slumping to a discount of about $53 in August. U.S. Harvests Corn for December delivery declined 0.7 percent to $5.6475 a bushel in Chicago. Soybeans for January delivery declined 0.4 percent to $12.2475 a bushel after touching $12.355 yesterday, the highest price for a most-active contract since June 5, 2009. The USDA report showed the country’s corn and soybean harvests are nearing completion. About 83 percent of the corn crop was harvested as of Oct. 24, up from 68 percent a week earlier and the previous five-year average of 49 percent, the USDA said. About 91 percent of soybeans were collected, up from 83 percent a week earlier and the average for the prior five years of 72 percent. Corn production will total 12.664 billion bushels, the USDA said on Oct. 8, down 3.8 percent from a September estimate and less than last year’s record 13.11 billion. The soybean crop was projected at a record 3.408 billion bushels, compared with 3.483 billion forecast in September and 3.359 billion last year. Corn was also supported by brisk demand from China, where domestic grain futures reached a record yesterday, Han from Korea Exchange Bank Futures said. On the Dalian Commodity Exchange, corn for May delivery was down 1 percent after reaching an all-time high of 2,250 yuan ($338) a ton yesterday. To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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