The price difference between corn and wheat futures is 54 US dollar cents. In the past year the
daily average was $1.28. The biggest spread in 2006 of $2.47 was recorded on
Oct. 11 as drought hurt crops in several exporting countries.
As the
spread narrows, some integrators will substitute wheat in livestock feed. Wheat
prices rose 27% percent in the past year while corn gained 80%.
Wheat
futures for March delivery rose 3.25 $cents, or 0.7%, to $4.6025 a bushel on the
CBOT, the highest closing price for the most-active
contract since Feb. 2.
Australian wheat production will fall 57% to 10.5
million tons by the end of the marketing year on May 31, the US Department of
Agriculture said. The US will produce 49.3 million tons, 14% less than last
year, USDA said. Global supplies will fall to 120.8 million tons by May 31, 20%
less than last year.
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