Wheat futures rose for the first time in seven sessions as a slumping dollar boosted the appeal of grain from the U.S., the world’s largest exporter.
The dollar dropped to the lowest level since January against a basket of six currencies. U.S. exporters sold 52 percent more wheat in the four weeks ended Sept. 23 than the same period a year earlier, government data show. Processors may have stepped up purchases after prices fell to the lowest level since July, said Tom Leffler at Leffler Commodities LLC.
“When the dollar goes down, it makes our exports more attractive to foreign customers,” Leffler said from Augusta, Kansas. “We did see a certain amount of end-user buying come in, considering we pushed the market down pretty considerably.”
Wheat futures for December delivery rose 16.25 cents, or 2.5 percent, to settle at $6.635 a bushel at 1:15 p.m. on the Chicago Board of Trade, the first gain since Sept. 24. During the previous six sessions, the grain dropped 10 percent in part as drought-damaged crops in Russia and Eastern Europe received rain. Futures are up 38 percent since the end of June.
Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show.