Wheat advances as dry weather threatens China, US production

Wheat futures gained for third day as dry weather threatens to curb production in the US, the world’s largest exporter, and China, the biggest consumer. May-delivery wheat climbed as much as 0.8 per cent to $8.2325 a bushel on the Chicago Board of Trade and was at $8.205 at 12:35 pm Singapore time. Rain in China’s northern wheat-growing areas will stop from today, after as much as 49 millimeters fell on the country’s drought-affected areas in the past four days, improving soil moisture, the China Meteorological Administration said in a statement posted on its website today.

Winter-wheat conditions in Kansas, the largest US grower of the variety, Oklahoma and Nebraska deteriorated in the past month, the US Department of Agriculture said yesterday. About 25 per cent of the Kansas crop was in good or excellent condition as of February 27, down from 27 per cent on January 30, the USDA said. In Oklahoma, about 19 per cent was in good or excellent condition, down from 21 per cent at the end of January, while in Nebraska, 40 per cent of the crop had the highest ratings, from 41 per cent a month earlier. Soybeans for May delivery were little changed at $13.655 a bushel after gaining as much as 0.3 per cent earlier. May- delivery corn was also little changed, at $7.3125 a bushel, after climbing 0.2 per cent.