Wheat rose after the U.S. Department of Agriculture said domestic inventories at the end of next season will be lower than analysts forecast as exports are expected to increase.
Stockpiles in the U.S., the world’s biggest shipper, may fall 4.3 percent to 735 million bushels on May 31, 2013, the USDA said today. Analysts surveyed by Bloomberg News estimated inventories at 827 million bushels. Exports may rise 12 percent to 1.15 billion bushels, the agency said.
“The U.S. stockpiles number is going to be looked at as a little bit friendly,” Jason Britt, the president at Central States Commodities Inc. in Kansas City, Missouri, said by telephone. “This will go a long ways in tempering some of that downside pressure.”
Wheat futures for July delivery rose 0.2 percent to settle at $6.0125 a bushel at 1:15 p.m. on the Chicago Board of Trade. The price is down 7.9 percent this year as warm weather and timely rain improved crop prospects.
Global inventories may fall 4.5 percent to 188.1 million metric tons in the year that ends on May 31, 2013, the USDA said. World production may fall 2.5 percent to 677.6 million tons.
Wheat is the fourth-largest U.S. crop, valued at $14.4 billion in 2011, behind corn, soybeans and hay, government data show.
To contact the reporter on this story: Tony C. Dreibus in Chicago at firstname.lastname@example.org.
To contact the editor responsible for this story: Steve Stroth at email@example.com.