Wheat Reaches 3-Month High in Paris as Egypt Buys; Soybeans Gain
Wheat climbed to the highest level in more than three months in Paris as Egypt issued a tender to buy the grain for the first time in a month. Soybeans advanced.
Egypt’s General Authority for Supply Commodities is seeking at least 60,000 metric tons of wheat at a tender today, Mamdouh Abdel Fattah, the vice chairman of the state-run agency, said by phone from Cairo yesterday. The grain is for shipment between Nov. 21-30. The last Egyptian tender was on Sept. 10. The nation was the world’s leading wheat importer last season.
“The Egyptian tender is helping support the market today even if many traders are not sellers there due to the European Commodities Exchange conference in Paris,” Edward de Wismes, an agricultural futures broker at Aurel BGC in Paris, said by e-mail today. “In the last tenders, we saw prices for French wheat were getting closer to Russian and Ukrainian, so maybe we will see some French wheat this time as well.”
Wheat for November delivery climbed 1 percent to 199.50 euros ($270) a ton by 1:22 p.m. on NYSE Liffe in Paris. Earlier the price touched 199.75 euros a ton, the contract’s highest since June 21. In Chicago, wheat for December delivery rose 0.5 percent to $6.9425 a bushel on the Chicago Board of Trade.
Egypt bought 235,000 tons of Russia, Romanian and Ukrainian wheat on Sept. 10 for shipment from Nov. 11-20, according to GASC. Prices ranged from $251.68 a ton to $254.88 a ton. The nation may buy 9.6 million tons of wheat in 2013-14, up from 8.3 million tons a year earlier, the International Grains Council in London forecasts.
Soybeans for November delivery rose 0.8 percent to $12.9825 a bushel in Chicago, gaining for the first day in three.
“China is said to have bought a few cargoes of U.S. beans for December and January shipment earlier in the week and Mexico is also shopping for U.S. beans, so the cash market is supporting the futures in the short term,” de Wismes said.
Soybean futures dropped 7.9 percent this year on prospects for a record global harvest. Stockpiles of the oilseed will jump 16 percent to 72 million tons by September 2014, the biggest gain in four years, according to the average of 17 analyst estimates compiled by Bloomberg News.
Hedge funds and other large speculators cut bullish wagers by 47 percent from a record 253,889 contracts in May 2012 to 135,252 futures and options on Sept. 24, data from the U.S. Commodity Futures Trading Commission show. The CFTC stopped issuing updates amid the government shutdown that started Oct. 1.
“We estimate speculators have been a seller of 12,000 to 15,000 soybean contracts since the last report, so even if this week the trend was more bullish thanks to this cash activity, speculators keep a bearish view on the long term,” de Wismes said. “Without public data, the market is really slow and traders are reluctant to take positions.”
Corn for December delivery was 0.5 percent higher at $4.4575 a bushel in Chicago
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