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Wheat Gains on Supply Outlook, Corn Prices Deemed Too High

August 18, 2012 at 1:28 by Vladimir Vyun

Wheat rose, reducing its weekly loss, on speculations that supply from Russia may shrink. At the same time, corn fell, following the rally to a record last week.

ZAO Rusagrotrans predicted that the amount of Russia’ wheat prepared for export would total 12 million metric tons in the 2012–13 season, 1 million tons below the previous estimate. The grain should be shipped by the end of this year.

Futures for delivery of wheat in December went up as much as 1.1 percent to $8.9125 per bushel on CBoT before trading at $8.8925 as of 12:29.

Corn slipped as buyers were deterred by the high price. Purchases of newly harvested US corn fell to 130,602 tons last week from 928,277 tons the week before, while exports of old stockpiles declined 30 percent. Last week, the prices rallied to a record as drought has hurt crops in the United States. The US Department of Agriculture estimated that US output would decline 13 percent to 10.78 billion bushels in 2012, the lowest level in six years.

December futures of delivery of corn decline 0.6 percent to $8.03 per bushel in Chicago.

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