June 15 (Bloomberg) -- Wheat may rise in Chicago on speculation wet weather in Canada might curb sowing, adding to supply concerns after dry weather hurt the winter crop in the U.S. and France, the world’s two largest exporters.
Farmers in Canada may be unable to plant 6 million to 8 million acres with wheat this year because of unusually wet weather, the Canadian Wheat Board said yesterday. The country ranks fourth worldwide among shippers of the grain, according to the International Grains Council.
“The Canadian situation is a major one in terms of high- protein wheat,” Michael Pitts, commodity sales director at National Australia Bank Ltd., said by phone from Sydney today. “The market has been concerned about it for some time.”
Wheat for September delivery was unchanged at $7.62 a bushel by 12:42 p.m. London time on the Chicago Board of Trade after gaining as much as 0.2 percent. November-delivery milling wheat traded on NYSE Liffe in Paris rose 2.25 euros, or 1 percent, to 221 euros ($316) a metric ton.
Canada’s acreage planted with all varieties of wheat may be the second-smallest since 1971 as “unrelenting rains across large areas of Western Canada” prompt farmers to leave millions of acres of land unplanted, the board said on its website yesterday.
The harvest in Australia may total 26.2 million tons in the 2011-12 season, 7.8 percent more than forecast and in line with last year’s crop, as favorable weather aids crops, according to the Australian Bureau of Agricultural Resources Economics and Sciences.
The U.S. Department of Agriculture last week raised its wheat-export forecast for Australia to 17 million tons from 15 million tons a month earlier. That would make the country the third-largest shipper in the next season.
Egypt, the world’s biggest wheat buyer, returned to the import market yesterday for the first time since Feb. 23, purchasing 120,000 tons of the grain grown in the U.S. and France.
Corn for December delivery fell 1.75 cents, or 0.3 percent, to $6.8325 a bushel in Chicago, sliding for a fourth day. Soybeans for November delivery gained 1.5 cents, or 0.1 percent, to $13.6525 a bushel.
Remaining corn, soybean and spring-wheat planting in the U.S. northern plains may continue to be slowed by rains forecast in the 10 days from June 14, and wet weather may promote more plant diseases, Telvent DTN Inc. said in a forecast yesterday.
“In the medium term, we’re still concerned about the weather and crop outlook in the U.S.,” National Australia Bank’s Pitts said. “In the northern half, it’s probably too wet and cold to develop at optimum yields.”
Soybean inventories will decline 4.2 percent to 66.9 million tons in the 2011-12 season, researcher Oil World said yesterday in a report.
--With assistance from Rudy Ruitenberg in Paris, Tony C. Dreibus in London, Phoebe Sedgman in Wellington, Whitney McFerron in Chicago and Ola Galal in Cairo. Editors: Dan Weeks, Claudia Carpenter.
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