Wheat Rebounds as Demand May Rise After Decline; Soybeans Gain
Wheat rebounded from a five-month low on speculation that a government report today may show a gain in U.S. export sales after prices dropped. Soybeans and corn also increased.
U.S. export sales of wheat in the week ended Dec. 20 may total 500,000 metric tons to 1 million tons, up from about 431,000 tons in the same week last year, according to a Bloomberg News survey. The U.S. Department of Agriculture is scheduled to release figures at 8:30 a.m. in Washington. Wheat prices have tumbled 10 percent this month.
“Grains have been weighed down by the lack of fresh export sales,” Arnaud Saulais, a broker at Starsupply Commodity Brokers in Nyon, Switzerland, said in an e-mailed report today. “High U.S. wheat exports numbers today could be seen as a buying signal.”
Wheat for March delivery climbed 0.7 percent to $7.775 a bushel by 6:16 a.m. on the Chicago Board of Trade. Futures dropped to $7.645 yesterday, the lowest level since July 2. Prices are still headed for a 19 percent advance this year.
Trading in wheat in Chicago was about 60 percent lower than the 30-day average for the time of day, according to data compiled by Bloomberg.
In Paris, milling wheat for March delivery rose 0.8 percent to 250.25 euros ($329.89) a ton on NYSE Liffe. The most-active contract is up 28 percent this year.
Soybeans for March delivery climbed 0.5 percent to $14.2125 a bushel on the CBOT, heading for an 18 percent increase this year. Corn for March delivery gained 0.4 percent to $6.9425 a bushel, up 7.4 percent in 2012.
Rain has delayed corn and soybean planting in Argentina and the harvesting of wheat crops. The country is the world’s second-largest corn exporter and third-biggest shipper of soybeans. One million hectares (2.47 million acres) were affected by excessive rain, delaying wheat harvesting by 11 percent and corn sowing by 5 percent compared with the previous season, the Buenos Aires Cereals Exchange said yesterday.
The rain “has been a little bit of concern for soybeans not being able to get planted and also for wheat, it will downgrade some of that,” said Michael Pitts, a commodity sales director at National Australia Bank Ltd.
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