Wheat futures rose the most in three weeks on signs of increasing demand for exports from the U.S., the world’s biggest shipper. Corn prices climbed, and soybeans fell.
In the week ended Sept. 12, export sales of wheat jumped 30 percent to 704,435 metric tons from a week earlier, topping forecasts by traders, U.S. Department of Agriculture data showed today. Sales since June 1 rose to 17.1 million tons, up 38 percent from the same period last year, as futures fell 16 percent this year.
“Export business continues to improve,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “Demand needs to continue to expand for additional gains.”
Wheat futures for December delivery rose 1.6 percent to close at $6.57 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain for a most-active contract since Aug. 26.
The price climbed after the Federal Reserve yesterday unexpectedly refrained from reducing the pace of monthly bond purchases, maintaining low borrowing and storage costs, Grow said. The outlook for low interest rates may boost export demand to build reserves, he said.
Yesterday, the Standard & Poor’s GSCI Spot Index of 24 raw materials rose 1.5 percent, the most in three weeks, and the Bloomberg U.S. Dollar Index touched a seven-month low following the statement by the U.S. central bank.
“The Fed decision may provide a lift to the commodity cycle,” Grow said.
Corn futures for December delivery climbed 0.7 percent to $4.595 a bushel in Chicago, the biggest gain since Sept. 10.
Soybean futures for November delivery fell 0.6 percent to $13.395 a bushel on the CBOT.
Corn is down 34 percent this year, while soybeans dropped 5 percent, on signs of bigger U.S. harvests this year.