CHICAGO, Nov 15 (Bloomberg): Wheat rose for the fifth straight day on speculation that more of the US crop will be used to feed livestock after the price of corn gained 22 per cent in the past two months.
About 190 million metric tonnes of the grain will be used as animal feed in the marketing year that ends on May 31, the US Department of Agriculture said in a report on November 10. That estimate may rise as corn futures gain, making wheat more attractive as a feed source.
"The feed outlook has a different complexion than a couple months ago when we thought we were going to have $3 corn," said Jason Britt, the president of Central States Commodities Inc in Kansas City, Missouri. "The figures are being recalculated and they're putting more wheat in the equation."
Wheat futures for March delivery rose 7.5 cents, or 1.4 per cent, to $5.5975 a bushel on the Chicago Board of Trade. The contract rose 13 per cent this week, partly on expectations for improved demand. The five-day rally was the longest since January 6. The commodity has gained 20 per cent in the past two months.
Sources: Financial Exp. BD
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