Wheat rallies to record $8 in Chicago

Wheat futures in Chicago climbed to a record, rallying for a fourth day, as demand from importers including South Korea and India reduced global inventories.

Buyers in Egypt, the world's biggest importer after Brazil, and Taiwan have also sought the grain, used for food, such as bread, biscuits and noodles, and for animal feed.

Wheat prices have doubled in the past year as adverse weather in Ukraine, Canada, Europe and Australia curtailed output. Global stockpiles will fall to the lowest in 26 years by May 31, according to the US Department of Agriculture.

"This is abnormal," said Park Yang Jin, business department manager at Daehan Flour Mills Co, Korea's largest milling wheat importer. "I hope to see a correction soon."

Wheat for December delivery rose as much as 22.5 cents, or 2.9 per cent, to $8.07 a bushel in electronic trading on the Chicago Board of Trade. The commodity was priced at $8.05 at 5:34 p.m. Singapore time, gaining 28 per cent this month.

South Korean flour millers, including Daehan, bought 47,700 tonnes of US wheat today. India received offers for 530,000 tonnes of wheat in a tender and will announce the result by September 3. Taiwan plans to buy 46,000 tonnes of US wheat on September 5.