US wheat futures rise as corn supply seen lower

Wheat rose for the first time in two weeks after the U.S. government said domestic stockpiles of corn, which competes as a feed grain for livestock, would decline more than analysts expected.

Wheat futures for July delivery rose 5.25 cents, or 1.2%, to US$4.3325 a bushel on the CBOT. The most-active contract is down 7.4% since May 27, the eve of its losing streak, because of reduced demand for US grain and swelling global stockpiles.

Corn futures for July delivery rose 5 cents, or 1.5%, to US$3.4325 a bushel on the CBOT, the biggest jump since May 26.

Wheat is the fourth-biggest US crop, valued at US$10.6 billion in 2009, behind corn, soy and hay, government data show.

Meanwhile, US winter-wheat production will fall to the lowest level in four years after unusually heavy rain prevented some farmers from planting before December, the government said.

The harvest will total 1.482 billion bushels in the year that began June 1, the smallest amount since 2006 and down 2.7% from 1.523 billion bushels a year earlier, the USDA said. Heavy rain during September, October and November prevented farmers from harvesting some corn and soy from fields that also are used for wheat during winter months.

Wheat is the fourth-biggest US crop, valued at US$10.6 billion in 2009, behind corn, soy and hay, government data show.