BLBG:Wheat Drops as Canada Output May Increase; Soybeans Fall
Wheat futures fell on speculation that Canada will boost output amid rising stockpiles that are expected to reach the highest in 12 years. Soybeans also fell.
Canadian farmers will plant 10 percent more wheat this year, Agriculture & Agri-Food Canada said yesterday. The area seeded with the grain will rise to 7.84 million hectares (19.4 million acres) and total production may rise 3.3 percent, the government said. Global stockpiles may reach 209.6 million metric tons this year, the highest since 2000, U.S. government data show.
“The only commodity that could be challenged this year is wheat with its important surplus,” said Jonathan Bouchet, a trader at Boman Capital SA in Geneva. “Weather issues in South America might push the grain complex to the upside for some weeks,” with wheat being the laggard, he said.
Wheat for May delivery declined 0.5 percent to $6.615 a bushel by 10:07 a.m. London time after yesterday surging as much as 3.7 percent. Futures are set for a 2.9 percent gain this week. Milling wheat on NYSE Liffe in Paris gained 0.6 percent to 215.50 euros ($281.30) a metric ton.
Soybeans declined from a six-month high on speculation that scattered showers and thunderstorms across Parana, Sao Paulo, and Mato Grosso Do Sul states in Brazil today will bring moisture to crops, Accuweather.com said in a forecast.
Soybeans for May delivery lost 0.3 percent to $13.655 a bushel in Chicago after earlier rising to $13.715, the highest price for the most-active contract since Sept. 15. Futures are up 2.1 percent this week, heading for their fifth straight weekly advance, the longest winning streak since November 2010.
Corn for May delivery was down 0.3 percent at $6.6675 a bushel after climbing yesterday to the highest price since Sept. 22. Futures are headed for a 3.4 percent gain this week, the most since the five days ended Jan. 27.
To contact the reporter 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
