Chicago futures gain as importers queue up

Wheat in Chicago climbed almost to last week's record on speculation demand for US supplies may rise as adverse weather cuts output in other countries. Corn was unchanged after falling earlier on better US crop conditions.

Egypt, the world's second-largest wheat importer, plans to buy at least 60,000 tonnes of the grain at a tender today, and Bangladesh plans to import 50,000 tonnes. Global inventories will fall to 114.8 million tonnes by May 31, the lowest in 26 years, the US Department of Agriculture said August 10.

"Global supplies of wheat are very tight despite record high prices," said Kenji Kobayashi, an analyst at Kanetsu Asset Management Co. "There will be some impact on demand for the grain in animal feed, benefiting relatively cheaper corn."

Wheat futures for December delivery rose as much as 15 cents, or 2 per cent, to $7.53 a bushel and traded at $7.52 a bushel in after-hours electronic trading on the Chicago Board of Trade at 5:16 p.m. Singapore time. Wheat futures reached a record $7.54 a bushel on August 23.

The price of the grain has almost doubled in the past year as production fell in several exporting countries, including in Europe, Ukraine, Canada and Australia.

Temperatures yesterday in parts of New South Wales, South Australia and Victoria states were as much as 12 degrees Celsius hotter than normal for August, Thomas Saunders, meteorologist with the Weatherzone, said today. Warmer-than-average days are expected until a change on Friday, he said.