July 1, 2010

US spring-wheat acres may total 13.907 million this year, which is above analysts' estimates.

Wheat rose the most in eight months after a government report showed shrinking US corn acreage, signalling lower grain supplies for livestock feed.

US farmers sowed 87.872 million acres (35.6 million hectares) with corn, fewer than expected and below a prior government forecast as below-average temperatures and wet weather in May interfered with field work.

"The wheat numbers look bearish, but that's going to be tempered by the corn numbers. Corn is going to be the trump card. Wheat, in this report, is in a follower's role," said Jason Britt, the president of Central States Commodities Inc. in Kansas City, Missouri.

Wheat futures for September delivery rose US$0.24, or 5.1%, to US$4.805 a bushel at 10:05 a.m. on the CBOT. A close at that price would be the biggest increase since October 12.

The most-active contract has gained 3.4% in the second quarter of the year, partly on speculation world production will fall on signs that farmers would plant fewer acres.

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