Wheat hits 3-month high

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    CHICAGO- Chicago wheat futures touched a three-month high, buoyed by rising cash prices and signs of tightening global supplies, analysts said.

    Soybean futures rose on worries about the size of the US harvest while corn fell on disappointing weekly US export sales.

    At the Chicago Board of Trade, December soft red winter wheat futures ended up 6-3/4 cents at $5.32-1/4 per bushel after reaching $5.32-3/4, its highest since July 15. For the week, the contract rose 24-1/4 cents a bushel or 4.8%, its seventh straight weekly advance.

    Wheat futures have drawn support as worsening crop prospects in southern hemisphere exporters Argentina and Australia, as well as weather-hampered spring wheat harvests in North America, have shifted attention away from large global stocks.

    Australia’s wheat production this year is expected to drop to 15.5 million tons, National Australia Bank said as it cut its forecast to well below recent market estimates of around 19 million tons.

    In Argentina, recent rains have not been strong enough to help wheat fields after weeks of dryness, the Buenos Aires Grains Exchange said on Thursday. – Reuters