Sept. 2 (Bloomberg) -- Milling wheat rose in Paris on concern global grain output will be smaller than previously expected amid dry weather in the U.S., even as a report showed improving prospects for European supplies.
The U.S., the world’s biggest exporter of corn and wheat, had drier-than-normal weather in the Midwest in the past two months, National Weather Service data show. Rain yesterday in Iowa, the largest corn-growing state, was mostly less than an inch (2.5 centimeters), the forecaster said. In the European Union, where the wheat harvest is near completion, production of the grain may be 142 million metric tons, 0.4 percent more than previously forecast, the International Grains Council said.
“Traders should be torn between bullish news from the current U.S. weather conditions in the Corn Belt and the bearish fundamental statistics in Europe,” Arnaud Saulais, a broker at Starsupply Commodity Brokers in Nyon, Switzerland, said in an e- mailed report today. Recent light rain in Iowa “should not be enough to improve soybean and corn crop conditions in one of the most dry states in the Midwest.”
Milling wheat for delivery in November climbed 1.5 percent to settle at 190 euros ($251) a ton by 6:30 p.m. on NYSE Liffe in Paris. Prices are down 24 percent this year on the outlook for rising global grain harvests as crops in eastern Europe, Russia and the U.S. recover from drought last year. Markets are closed in Chicago today for the Labor Day holiday.
Total world grain production may be 1.93 billion tons in the 2013-14 season, 0.5 percent more than previously expected, as improving outlooks for EU and South American crops make up for a downgrade in the U.S. harvest, the London-based council said Aug. 30. The U.S. Department of Agriculture said Aug. 12 domestic corn output may be 13.76 billion bushels, the highest ever while less than forecast in July. The agency is scheduled to update its estimates Sept. 12.
Egypt, historically the world’s biggest wheat importer, agreed to buy 355,000 tons on Aug. 31 from suppliers in Russia, Romania and Ukraine, according to the state-run General Authority for Supply Commodities. It has issued seven tenders to buy the grain since the beginning of July, data compiled by Bloomberg shows.
Corn for delivery in November advanced 2.8 percent to 175.25 euros a ton. Rapeseed for the same delivery month added 1.5 percent to 387 euros a ton. The oilseed has rebounded 9.6 percent from a three-year low on July 31, climbing in tandem with soybeans traded in Chicago.
--Editors: Sharon Lindores, John Deane