Aug. 22 (Bloomberg) -- Wheat futures in Chicago rose the most in a week on speculation that a global grain surplus will be smaller than forecast after Canada reported a drop in output and rains delayed the U.S. harvest.
Canada, the world’s second-largest exporter, will harvest 26 percent less this year, the government reported yesterday. As much as 6 inches (15 centimeters) of rain forecast in the northern U.S. and parts of Canada through the weekend may cause minor crop losses and delay harvesting, Commodity Weather Group said in an e-mailed report. The U.S. is the biggest exporter.
“Farmers have been chomping at the bit to get rolling,” Eugene Graner, president of Heartland Investor Services Inc. in Bismarck, North Dakota, said in a telephone interview. “We’re having some issues with a lot of rains. It’s going to be that way all week.”
Wheat futures for December delivery rose 1.2 percent to close at $5.6225 a bushel at 1:15 p.m. on the Chicago Board of Trade, posting the biggest gain since Aug. 15. Prices earlier touched $5.705, the highest since Aug. 15. Futures have tumbled 12 percent in the past 12 months as global production was forecast to climb. Spring-wheat futures on the Minneapolis Grain Exchange gained as much as 2.7 percent to $6.40 a bushel, the highest since Aug. 8.
World wheat production may rise to a record 716.09 million metric tons in the 2014-2015 marketing year, the U.S. Department of Agriculture said Aug. 12.
Canadian production will drop to 27.7 million tons from a record 37.5 million in 2013, Statistics Canada said yesterday. Analysts in a Bloomberg survey expected 29.1 million. As of Aug. 17, farmers had collected 17 percent of the U.S. spring-wheat crop, less than the five-year average of 33 percent for that date, the USDA said. Quality concerns also loom for the crop in Europe after heavy rains.
Soybean futures for November delivery rose 0.4 percent to $10.42 a bushel on the CBOT. Corn futures for delivery in December increased 0.7 percent to $3.715 a bushel.
--With assistance from Rudy Ruitenberg in Paris and Phoebe Sedgman in Melbourne.