Wheat Increases on Concern of U.S. Export Sales Increasing as Prices Drop

Wheat increased the most in more than a month, boosted by speculation that a price cut will increase the demand for U.S. supplies.

Wheat futures for July delivery increased by 3.7 percent or 29.75 cents to $8.3525 a bushel on the Chicago Board of Trade.

The price gain was also attributed to speculations that farmers in Argentina, the world's fourth largest supplier of the grain, will block trucks carrying crops for export to protest the increased taxes.

Crops have declined by 40 percent in the past few weeks since posting a high record of $13.495 on Feb. 27, when high prices reduced demand and increased prospects for greater global production.

Brazil responded to limits on exports, by lowering levies on some imports to further reduce the domestic cost of the staple grain.

There are speculations that Brazil, the world's largest buyer of wheat, will eliminate a tariff on more imports of the grain from countries outside the South American group which is comprised of Brazil, Argentine, Uruguay and Paraguay.

The USDA said in a report that U.S. exporters sold 116,800 tons of the grain to Brazil.