Wheat Rises on Forecast for Dry Conditions in U.S. Great Plains

With dry weather expected to continue in the great plains, wheat rose for the second day in a row, as the winter crop is coming out of dormancy.

Both western Kansas and Texas, along with the Oklahoma Panhandle haven't received rain for two weeks, and there isn't any precipitation expected in the next five days either.

Meteorologists say the severe draught, which extends from Texas to the Canadian Prairies threatens the crop this year.

It is also expected that dry weather will expand to the central midwest from April through August, further disrupting wheat yields.

The U.S. Department of Agricultue said in a report on March 11 that global wheat inventories could fall to 110.4 million metric tons by May 31, with U.S. inventories possibly plunging by 6.6 million tons. That's a 47 percent drop from last year.

July delivery for wheat futures increased by 2 cents to reach $9.525 a bushel on the CBOT.