Wheat posted gains on Thursday after millers and overseas importers encountered shortage of spring grain, used to make bread, pasta and other staple foods.

Demand for high-protein grain increased as wheat futures in Minneapolis where spring wheat is traded almost tripled last year.

Wheat increased by 30 cents on the Chicago Board of Trade, the Kansas City Board of Trade and on Minneapolis Grain Exchange.

Wheat for March delivery, in Chicago increased by 2.9 percent to a record as high as $10.63 a bushel.

Wheat futures more than doubled last year on the Chicago Board of Trade due to drought that disrupted production in Canada and Australia as well as very low temperatures coupled with excessive rainfall that reduced yields in the United States.

Wheat for March delivery in Kansas City increased by 2.8 percent to $11.1025 a bushel.

The March contract increased by 2 percent to $15.23 a bushel in Minneapolis.

According to the Department of Agriculture, the U.S. inventories of high protein hard red spring wheat were forecasted to fall to 88 million bushels by the end of the marketing year on May 31.

Global inventories of wheat were forecasted to decline to 110.9 million while stockpiles might fall to 292 million bushels or 7.95 million tons.

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