Wheat futures advanced for a third day as dry weather threatened to damage winter crops in Europe and the U.S., and excess rainfall delayed planting of the spring variety in Canada, adding to concerns that global supplies may tighten. About 42 percent of the winter-wheat crop in the U.S., the world’s largest exporter of the grain, was rated poor or very poor in the week to May 8, up from 41 percent the previous week and 8 percent in the same week a year earlier, the U.S. Department of Agriculture said yesterday. Rain in the northern Plains and Canada has delayed spring-wheat seeding. “We’re definitely seeing weather coming back into wheat markets,” said Erin Fitzpatrick, an analyst at Rabobank in London. “U.S. winter wheat poor-very poor increased again this week, no rain in Europe over the weekend and Canada only had 3 percent planted. We need to get some better weather soon.” Wheat for July delivery gained 20 cents, or 2.5 percent, to $8.105 a bushel by 1:15 p.m. London time on the Chicago Board of Trade, extending yesterday’s 4.1 percent jump. The price is up 64 percent in the past year. Milling wheat for November delivery on the NYSE Liffe exchange in Paris gained 3.25 euros, or 1.4 percent, to 229.25 ($329.94) a metric ton. About 22 percent of spring-wheat was planted, compared with 64 percent a year ago, and the previous five-year average of 61 percent, USDA data show. “Adverse weather in the U.S. and in Europe continues to affect crop development,” said Abah Ofon, an analyst at Standard Chartered Bank. “Although we remain largely positive on the supply outlook, risks to our view are now more elevated. The fundamental shift in global trade patterns and import demand, as a consequence of the 2007-08 food crisis, suggests that the market cannot afford a poor harvest this year.” So Muddy The central and southern plains in the U.S. had below normal rainfall for an eighth consecutive month in April, Informa Economics Inc. said May 6. The Canadian Wheat Board said yesterday fields are so muddy that only 3 percent of grain has been sown, compared with 40 percent normally. Canada is the largest wheat shipper after the U.S. and the European Union, according to the USDA. Australia’s wheat production may fall 2 million tons to 24.3 million tons in the 2011-2012 season from a record a year earlier as drought conditions persist in the western part of the country, Mathews said in a separate report. Australia is the world’s fourth-largest wheat exporter, according to the USDA. Pace of Slowing Corn for July delivery gained 7.5 cents, or 1.1 percent, to $7.15 a bushel in Chicago after climbing 3.1 percent yesterday. Corn futures are up 93 percent in the past year. About 40 percent of the U.S. corn crop, the world’s biggest, was planted as of May 8, advancing from 13 percent a week earlier, the USDA said yesterday. Still, the pace of sowing was behind last year’s 80 percent, and the previous five-year average of 59 percent. Soybeans for July delivery increased for a third session, gaining 0.7 percent to $13.445 a bushel in Chicago. The price has jumped 1.7 percent in the past three sessions. To contact the reporters on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net; Tony C. Dreibus in London at tdreibus@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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