Wheat Advances as Production in Canada Forecast to Decline

By Luzi Ann Javier

Nov. 9 (Bloomberg) -- Wheat gained for the first time in three sessions as output in Canada, the world’s second-largest exporter, was forecast to drop 15 percent this year. Corn and soybeans also advanced.

Wheat output in Canada may plunge to 24.35 million tons in the marketing year that began Aug. 1, from an estimated 28.611 million tons last year, the U.S. Department of Agriculture’s Foreign Agricultural Service said in a report posted on Nov. 6.

“That’s the news, that’s why the market is rallying,” Peter McGuire, managing director at CWA Global Markets Pty. said by phone from Sydney today.

December-delivery wheat rallied as much as 1.3 percent to $5.035 a bushel in after-hours on the Chicago Board of Trade and was at $5.0225 a bushel as of 2:03 p.m. Singapore time.

Soybeans for January delivery rose as much as 1.5 percent to $9.69 a bushel before trading at $9.68. Corn for December delivery added 1.1 percent to $3.71 at 2:03 p.m. Singapore time.

The Midwest is expected to have warm weather in the coming week, according to a forecast by DTN Meteorlogix LLC.

Drier, warmer weather may advance the harvesting of soybeans and corn in the major growing regions of the U.S., the world’s biggest exporter of both crops, and accelerate planting of winter-wheat, McGuire said.

The USDA may raise its yield forecast in Tuesday’s report, he added. The USDA is scheduled to release Nov. 10 its latest estimates of U.S. and global production and demand for soybeans, corn and wheat.

The USDA forecast in October that the nation’s soybean output will rise to a record 3.25 billion bushels, higher than the 3.245 billion bushels it estimated a month earlier.

It also increased in October its U.S. corn output estimate to 13.018 billion bushels, the second-largest on record, from 12.955 billion bushels a month earlier.

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net