BLBG: Wheat Gains as Dry Weather in U.S. Growing Areas Threatens to Stress Crops
Wheat futures advanced as dry weather in the growing regions of the U.S. threatened crop development in the world’s largest exporter.
“Dry weather continues to stress winter-wheat development, especially through western growing areas” in the central and southern plains, Telvent DTN Inc. said in a forecast yesterday. “There appears little chance of significant rains to occur in the dry western belt” in the six-day period starting from yesterday, it said.
Wheat for December delivery gained as much as 0.5 percent to $6.975 a bushel on the Chicago Board of Trade before trading at $6.955 at 12:18 p.m. Singapore time.
“Global crop weather always remains an important driver of the agricultural commodity complex,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said by phone from Sydney today.
About 46 percent of winter wheat was in good or excellent condition as of Oct. 31, down from 47 percent the previous week and 64 percent a year earlier, the USDA said on Nov. 1. About 92 percent of the crop was planted in 18 states, compared with 88 percent a week earlier and 81 percent a year ago, the USDA said.
Corn futures advanced for the first time this week on speculation the USDA may lower its estimate of the nation’s harvest, limiting supplies available to importers.
December-delivery corn added as much as 0.5 percent to $5.7875 a bushel on the Chicago Board of Trade, before trading at $5.7625.
Harvest Decline
The corn harvest in the U.S., the world’s biggest grower, may fall to 12.592 billion bushels this year, compared with the government’s October forecast of 12.664 billion, agricultural researcher Informa Economics Inc. said yesterday.
The Memphis, Tennessee-based agricultural researcher’s estimate compares with FCStone Group Inc.’s forecast of 12.523 billion bushels. U.S. farmers harvested a record 13.11 billion bushels last year.
One of things “the grain market is looking at is the USDA report to be released Tuesday,” Mathews said, referring to the agency’s latest estimates on the U.S. harvest and global supply and demand of agricultural commodities.
January-delivery soybeans gained as much as 0.6 percent to $12.41 a bushel, before trading little changed at $12.3425.
The U.S. soybean crop will reach 3.449 billion bushels, FCStone said. The USDA last month predicted 3.408 billion bushels, up from last year’s record 3.359 billion bushels.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
