Wheat futures gained in Chicago as sales of U.S. supplies increased on the dollar's weakness and lower shipping costs. Corn and soybeans also advanced.
Exporters sold 508,800 metric tons of U.S. wheat in the week through Jan. 24, a 20 percent increase from the prior week, the U.S. Department of Agriculture said yesterday. Advance sales to overseas buyers are up 66 percent since June 1 compared with this time a year earlier, government data show.
``For overseas buyers, the weaker dollar helps cut import costs,'' said Kenji Kobayashi, an analyst at Kanetsu Asset Management Co. Chicago prices were supported by a rise to a record in Minneapolis wheat futures and concern supplies will remain tight even after harvests in the U.S., he said.
Wheat for March delivery gained as much as 15.25 cents, or 1.6 percent, to $9.4475 a bushel in after-hours electronic trading on the Chicago Board of Trade. The contract was at $9.37 at 4:04 p.m. Singapore time.
The contract rose 0.8 percent yesterday and gained 5 percent in January. The wheat price reached a record $10.095 on Dec. 17 after importers began buying U.S. supplies on concern global farmers wouldn't produce enough.
The Baltic Dry Index of shipping costs for commodities has dropped 41 percent in the past two months and the dollar lost 11 percent in the past year against six major currencies.
Soft red-winter wheat, used to make cookies and cakes, is produced mostly in the eastern Midwest and trades in Chicago. Hard red-winter wheat, used to make bread, is grown in the southern Great Plains and traded in Kansas City.
Spring Wheat
Spring wheat, a high-protein variety, trades on the Minneapolis Grain Exchange and is grown in the northern Great Plains, including North Dakota and Minnesota, and in Canada.
Wheat for March delivery on the Minneapolis Grain Exchange advanced the 30 cent daily maximum for a second day to a record.
In the export market, Japan bought 41,000 metric tons of U.S. wheat today. The country plans to buy up 17,000 tons of feed wheat and 241,000 tons of feed barley at a tender Feb. 13.
