June 3 (Bloomberg) -- Wheat futures advanced for a second day on speculation dry weather in the U.S. and parts of Europe and excessive rains in Canada will curb global supply.
Informa Economics Inc. yesterday lowered its U.S. wheat- crop estimate by 0.9 percent to 2.088 billion bushels this year, Output was 2.208 billion bushels last year, according to U.S. Department of Agriculture estimates. The Memphis, Tennessee- based researcher also reduced its harvest forecasts for the European Union by 5.4 percent and for Canada by 1.8 percent.
The weather “keeps pressure on for prices to move higher,” Jonathan Barratt, managing director at Commodity Broking Services Ltd. in Sydney, said in an e-mail today.
Wheat for July delivery gained 3.25 cents, or 0.5 percent, to $7.735 a bushel on the Chicago Board of Trade by 11:47 a.m. London time, paring this week’s decline to 5.6 percent. Milling wheat on the NYSE Liffe exchange in Paris rose 0.4 percent to 238.50 euros ($345.54) a metric ton.
The U.S., Canada and the EU are the world’s biggest shippers of wheat, according to the USDA.
Corn for July delivery fell 2 cents, or 0.3 percent, to $7.645 a bushel, set for a 0.8 percent gain this week. July- delivery soybeans gained 0.4 percent to $14.125 a bushel in Chicago, taking the weekly gain to 2.4 percent.
--With assistance from Whitney McFerron in Chicago. Editors: Matthew Oakley, Jarrett Banks
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