June 9 (Bloomberg) -- Wheat rose for a second day in Chicago on speculation the U.S. Department of Agriculture will cut its production forecast for winter varieties after drought hurt crops in the southern Great Plains.
U.S. farmers may harvest 1.391 billion bushels of winter wheat, the least in five years, according to a Bloomberg News survey of analysts before a USDA report due at 8:30 a.m. in Washington. Farmers are collecting grain in Texas, Oklahoma and Kansas after planting in September and October. Large areas of those states had less than half of the normal amount of rain in the past 60 days, National Weather Service data show.
The USDA will lower its estimate “as the crops grown in western Kansas southward into Oklahoma and Texas have fared badly in the drought there,” economist Dennis Gartman wrote in the Gartman Letter today.
Wheat for July delivery gained 11 cents, or 1.5 percent, to $7.59 a bushel by 11:43 a.m. London time on the Chicago Board of Trade. Milling wheat for November delivery traded on NYSE Liffe in Paris climbed 2.50 euros, or 1.1 percent, to 236.50 euros ($345.31) a metric ton.
World wheat output will be lower than previously expected, the International Grains Council said this week. The crop will total 663 million tons, 4 million tons below its outlook from two weeks earlier on downgrades for France, Germany and the U.K., the IGC said.
Corn for July delivery slipped 0.5 cent, or 0.1 percent, to $7.635 a bushel in Chicago. The grain climbed as much as the exchange limit of 30 cents yesterday and is up 21 percent this year, the best-performing agricultural commodity in the 19- contract Thomson Reuters/Jefferies CRB Index.
Soybeans for November delivery fell 5 cents, or 0.4 percent, to $13.875 a bushel. The oilseed has dropped 1.1 percent this year, lagging behind corn on speculation growers may switch to soybeans after wet weather delayed grain sowing. Soybeans can be planted until late June.
--With assistance from Luzi Ann Javier in Singapore. Editors: Dan Weeks, Sharon Lindores.
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