Wheat futures rose for a second day on signs of improved demand for U.S. exports after prices touched a 14-month low. Soybeans and corn also advanced.
Wheat inspected for export jumped 56 percent to 46.024 million bushels in the week ended Sept. 12 from a year earlier, the U.S. Department of Agriculture said Sept. 16. Sales since June 1 rose 38 percent to 602 million bushels as of Sept. 5 from the same period a year earlier, the agency said. Average U.S. cash prices fell Sept. 6 to the lowest since June 2012, down 20 percent this year, the Minneapolis Grain Exchange said.
“U.S. exports have been better than expected this year and are putting a floor under prices,” Tom Leffler, the owner of Leffler Commodities LLC in Augusta, Kansas, said in a telephone interview. “The low prices have shut off farmer selling and tightened up supplies.”
Wheat futures for delivery in December rose 0.5 percent to close at $6.465 a bushel at 1:15 p.m. on the Chicago Board of Trade, after gaining 0.3 percent yesterday. The most-active contract touched a 14-month low on Aug. 14 at $6.355.
The price reached the day’s high after the Federal Reserve unexpectedly refrained from reducing the pace of monthly bond purchases, Jerry Gidel, the chief feed-grain analyst for Rice Dairy LLC in Chicago, said in a telephone interview.
Soybean futures for delivery in November gained 0.4 percent to $13.4775 a bushel on the CBOT, after declining 3.8 percent in the prior three sessions. The oilseed added 7.6 percent since the end of June on speculation that dry weather and heat would hurt U.S. yields. The USDA cut its outlook for the national crop by 3.3 percent last week to 3.149 billion bushels.
Corn futures for delivery in December climbed 0.5 percent to $4.5625 a bushel in Chicago. The grain retreated 3.9 percent in the prior four sessions and yesterday touched $4.5325, the lowest for the most-active contract since Aug. 14. The USDA said Sept. 12 farmers may harvest a record 13.843 billion bushels of corn this year, up 28 percent from 2012.