Wheat climbed for an eighth day to trade near the highest in almost a year as deteriorating crops in the U.S. boost supply concerns in the biggest exporter.
The contract for July delivery rose as much as 0.4 percent to $7.245 a bushel on the Chicago Board of Trade and was at $7.225 by 2:35 p.m. in Singapore. Prices reached $7.2475 yesterday, the highest since May 2013, and an eighth straight advance would be the longest rally since July 2012.
U.S. winter wheat was rated 34 percent in poor or very poor condition as of April 27, up from 33 percent a week earlier, U.S. Department of Agriculture data show. Concern for the development of hard-red winter wheat in the southern Plains is now quickly turning into a likely yield loss, Macquarie Group Ltd. said April 28. Worsening crop conditions have helped wheat futures climb 20 percent this year in Chicago.
Watch AgDay's May 1 agribusiness segment for more on today's high cattle prices:
"Conditions haven’t been favorable," Vyanne Lai, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today. "There’s been persistent dryness in the southern Plains in the U.S."
Hard-red winter wheat for July delivery gained as much as 0.6 percent to $8.17 a bushel, the highest since February 2013. About 72 percent of Kansas, the largest U.S. grower of winter wheat, was rated in severe to exceptional drought as of April 22, according to the U.S. Drought Monitor.
Soybeans for July delivery declined 0.2 percent to $15.0925 a bushel. Corn was little changed at $5.1875 a bushel.
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