Wheat advanced amid signs of rising global demand as Egypt, the world’s biggest importer, issued a tender to purchase the grain.
The contract for March delivery gained as much as 0.3 percent to $5.6925 a bushel on the Chicago Board of Trade and was at $5.69 by 9:57 a.m. in Singapore. Prices dropped 2 percent yesterday and fell for a sixth week in the period ended Jan. 10 on the outlook for record global production.
Egypt is seeking at least 60,000 metric tons for shipment between Feb. 15 and Feb. 28, the General Authority for Supply Commodities said yesterday. The country on Jan. 11 agreed to buy 55,000 tons of U.S. soft, red winter-wheat at $303 a ton including freight costs, according to the state-run agency. Japan is seeking to buy the most milling wheat in 13 months in a tender today, according to the Agriculture Ministry.
“Egypt is back in the market seeking supplies for late February shipment,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today. “If a large purchase of U.S. wheat is observed, which is possible, we might see some support come through for CBOT futures.”
Soybeans for March delivery were little changed at $13.1925 a bushel after prices gained for a fifth day yesterday. Corn was unchanged at $4.2575 a bushel.
To contact the reporter on this story: Phoebe Sedgman in Melbourne at firstname.lastname@example.org
To contact the editor responsible for this story: James Poole at email@example.com