Wheat advanced following reports that Pakistan will produce less grain than forecasted due to high fertilizer costs that prompted farmers to reduce planting.

Wheat for July delivery gained 1.3 percent or 12.25 cents to $9.4675 a bushel on the Chicago Board of Trade.

Wheat futures increased as high as $13.495 on Feb. 27 amid speculation that global stockpiles will decline due to heavy rains that hurt U.S. crops in 2007 and drought that reduced yields in Canada and Australia.

Wheat prices were forecasted to increase as rainfall increases in the U.S. eastern Midwest from Arkansas to Ohio, which may flood the fields reducing yields for wheat crops.

Pakistan was forecasted to harvest 22 million metric tons, below the 24 million tons estimated in October.

Pakistan farm ministry said the fertilizer prices increased by 44 percent, reducing the use to 600,000 tons, less than half the amount used last year.

Pakistan is the world's sixth largest wheat producer.

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