Wheat Advances as Slump to Six-Month Low May Attract Importers

Wheat climbed for the first time in three days on speculation that importers such as Egypt will take advantage of the decline in prices this month. Corn gained on dwindling supplies from the U.S., the biggest exporter.

Wheat for March delivery rose as much as 0.8 percent to $7.5125 a bushel on the Chicago Board of Trade and was at $7.5025 by 11:16 a.m. Singapore time. Futures lost 3.6 percent this month and reached $7.3975 on Jan. 4, the cheapest level since June 27.

Egypt, the world’s biggest importer, is seeking to buy at least 60,000 metric tons at a tender today, Nomani Nomani, the vice chairman of the state-run General Authority for Supply Commodities, said yesterday. Corn supplies in the U.S. probably fell 15 percent to 208.8 million tons as of Dec. 1, the smallest post-harvest stockpile since 2003, according to the average estimate of 26 analysts compiled by Bloomberg.

“We may see greater demand for U.S. supplies because prices have fallen significantly from its highs and are bullish short-term for wheat,” Joyce Liu, an analyst at Phillip Futures Pte, wrote in a report today. “The market seem to favor long positions ahead of the key January WASDE report, reflecting sentiments for a reduction in U.S. corn ending stocks,” she said, referring to the U.S. Department of Agriculture’s world supply-and-demand estimates due tomorrow.

Corn for March delivery climbed as much as 0.6 percent to $6.9825 a bushel before trading at $6.9775. Soybeans for delivery in the same month rose 0.2 percent to $13.8825 a bushel.

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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