Wheat rose for a second day in Chicago on speculation dry weather may have hurt crops in France, Germany and the U.K., the largest European producers. Corn and soybeans gained amid planting delays in the U.S.
French wheat costs are near their highest in three years compared with U.S. grain and the premium is likely to rise as record food prices stoke demand from governments in North Africa seeking to end growing protests.
U.S. farmers, the biggest wheat shippers, are poised to lose their advantage over French growers in export markets after the worst Midwest drought in more than a decade wilted grain crops and drove prices to a 10-month high.
Pig prices in Germany jumped the most in three years as unseasonably warm weather prompted consumers to fire up barbecues at a time when the priciest U.S. hogs ever are boosting demand for European supplies.
Russia will have little grain left to export in November and wheat prices already reflect the lack of supply, according to Alexandre Marie, a wheat analyst at Bourges, France-based farm adviser Offre & Demande Agricole.
Offre et Demande Agricole, which advises more than 5,000 French farmers on crop sales, plans to open an office in Poland as the company expands its presence in major agricultural producing countries across Europe.
Milling wheat for November delivery may climb in Paris today after closing above 250 euros ($356) a metric ton, which may prompt buying by sellers of call options on the future, farm adviser Offre et Demande Agricole said.
French wheat and rapeseed crops are at “little risk” from winter damage because of favorable conditions for planting and development, said Cédric Weber, an analyst at Bourges, France-based Offre et Demande Agricole. Following are comments he made by phone on Dec. 15: