Wheat advanced for the first time in three days on concern that South American supplies may decline as cold weather may harm crops in Argentina and excess rain delays harvest in Brazil.
The contract for December delivery gained as much as 1.1 percent to $6.89 a bushel on the Chicago Board of Trade and was at $6.8775 by 10:41 a.m. in London. Prices slumped 12 percent this year as global output will climb to a record 708.9 million metric tons, the U.S. Department of Agriculture estimates.
Argentina is set for limited rain in the next seven days as colder weather may produce some frost and light freeze in southern wheat areas early next week, potentially damaging heading crops, forecaster DTN said yesterday. Argentina’s exports supplies may be "very small" in the 2013-2014 season as 900,000 hectares, or 22 percent of the crop area, is in poor condition after dry weather and frost, Oil World said Oct. 1.
"Rains have topped up top-soil moisture, but the sentiment is that more rain will be required to see the crop through," Profarmer Australia, a unit of NZX Ltd. said in a report dated yesterday, referring to Argentina.
Wheat areas in Brazil may get excess rain, hindering harvesting, weather forecaster Somar Meteorologia said in a report e-mailed Oct. 15. Milling wheat traded in Paris climbed 0.5 percent.
Soybeans for November delivery gained 0.2 percent to $12.795 a bushel. Corn for delivery in December advanced 0.7 percent to $4.4575 a bushel.