Wheat Futures Prices Fall, Canada boost Output

Wheat futures fell on speculation that Canada will boost output amid rising stockpiles that are expected to reach the highest in 12 years.

Canadian farmers will plant 10 percent more wheat this year, Agriculture & Agri-Food Canada said yesterday. The area seeded with the grain will rise to 7.84 million hectares (19.4 million acres) and total production may rise 3.3 percent, the government said. Global stockpiles may reach 209.6 million metric tons this year, the highest since 2000, U.S. government data show.

“The only commodity that could be challenged this year is wheat with its important surplus,” said Jonathan Bouchet, a trader at Boman Capital SA in Geneva. “Weather issues in South America might push the grain complex to the upside for some weeks,” with wheat being the laggard, he said.

Wheat for May delivery declined 0.5 percent to $6.615 a bushel by 10:07 a.m. London time after yesterday surging as much as 3.7 percent. Futures are set for a 2.9 percent gain this week. Milling wheat on NYSE Liffe in Paris gained 0.6 percent to 215.50 euros ($281.30) a metric ton.

Wheat futures for May delivery advanced 0.7 percent to $6.695 a bushel at 9:45 a.m. in Chicago, after touching $6.73, the highest since March 5.