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.
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.
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.
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.
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.
Paris wheat futures may halt a two- week decline at a level of 245 euros ($324) a metric ton after falling below a support level of 255 euros three days ago, according to technical analysis by Cedric Weber, an analyst at France’s Offre & Demande Agricole.