Wheat, little changed, may rise on speculation that the lowest prices in six weeks will spur overseas sales of U.S. supplies as well as speculative investment.
The price dropped 8.1 percent in the previous six sessions. Investors who had bet prices would fall may be buying back contracts and closing out positions on expectations that the lower prices will spur importers to buy from the U.S., the world’s largest shipper of the grain, said Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas.
“We’ve had enough days of selling pressure that we were due for a bounce,” Glenn said.
Wheat futures for July delivery rose 0.25 cent to $4.6925 a bushel at 10:04 a.m. on the Chicago Board of Trade. Yesterday, the price touched $4.6625, the lowest level for a most-active contract since April 6. Before today, the commodity dropped 13 percent this year because of reduced demand for U.S. grain and rising global stockpiles.
Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show.