March 14 (Bloomberg) -- Wheat futures rose, capping the longest rally in seven months, after a government report showed higher overseas demand for U.S. supplies. Corn also climbed, while soybeans declined.
In the week ended March 7, U.S. wheat exporters increased sales 44 percent from a week earlier to 888,540 metric tons, the second-highest total since the marketing year began June 1, the Department of Agriculture said in a report today. Premiums shippers paid for the grain delivered to New Orleans yesterday rose to the highest in two weeks, the USDA said.
“Export sales are improving,” Shawn McCambridge, the senior grain market analyst for Jefferies Bache LLC in Chicago, said in a telephone interview. “The cash markets are starting to firm up to acquire additional supplies.”
Wheat futures for May delivery rose 2.1 percent to close at $7.2475 a bushel at 2 p.m. on the Chicago Board of Trade, the largest gain since Nov. 27. Prices have gained 6 percent in six sessions, the longest rally since July 20.
There were 545 delivery receipts, linked to more than 2.7 million bushels of the grain, canceled in Toledo at the Anderson’s Inc. grain terminal overnight, the CBOT said in a report. The canceled receipts mean the wheat may be moving from stockpiles to replace corn in livestock rations, McCambridge said.
In Toledo yesterday, wheat traded at a discount of 35.25 cents a bushel to corn. That compares with an average premium of about 41 cents in the past year, according to USDA data compiled by Bloomberg.
Corn futures for May delivery rose 0.9 percent to $7.165 a bushel on the CBOT, the highest close since Feb. 6.
Soybeans futures dropped 0.8 percent to $14.355 a bushel in Chicago. Prices earlier reached $14.29, the lowest for a most- active contract since Feb. 27.
About 11.66 million metric tons of the oilseed and soy products were scheduled for shipment at leading Brazilian ports as of today, up from 10.71 million a week earlier, according to SA Commodities and Unimar Agenciamentos Maritimos.
--With assistance from Luzi Ann Javier in Singapore and Rudy Ruitenberg in Paris. Editors: Millie Munshi, Patrick McKiernan