CBOT wheat up 3.6pc on weak dollar, short covering
CHICAGO: US wheat futures rallied on Wednesday, with the benchmark Chicago Board of Trade contract notching its biggest percentage gain in more than two months, supported by easing fears about the global economy, traders said.
Short-covering and a weak US dollar also added strength to wheat prices, which had dropped to their lowest level in three months earlier this week.
European finance ministers agreed to safeguard their banks against fallout from the region's debt crisis, providing some relief to investors who had shied away from risky assets in recent weeks due to uncertainty about the world economy.
CBOT front-month wheat gained 3.6 percent, its biggest daily increase since rising 6.1 percent on Aug. 2, in light volume trade.
Egypt has 2.8 million tonnes of wheat in storage, enough for four months - cabinet.
US southern Plains seen dry during next few days but rain in forecast for Friday and the weekend, beneficial for development of recently seeded crop.
Copyright Reuters, 2011
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