US wheat leaps four percent

Wheat jumped 4 percent on Thursday posting its biggest one day gain in over two weeks as European leaders moved to solve the region's debt crisis. Corn and soybeans rallied over 2 percent also notching their biggest one day gain in two weeks as optimism about the solution to the European financial situation spread around the globe touching off risk-on trading.
European leaders agreed to boost the region's bailout fund and struck a deal with banks and insurers to accept 50 percent losses on Greek bonds. The move pummelled the dollar, boosted crude oil and drove equities nearly 3 percent higher. Investor euphoria over the deal tumbled the dollar index to its biggest drop since March 2009, which lifted a broad range of commodities, including grains and soy. "The dollar continues to weaken, and so we are taking another run up to the top," said Terry Linn with the Linn Group, a Chicago brokerage.
CBOT December wheat was up 24-1/2 cents at $6.44 per bushel. Most-active January soybeans were up 24-1/4 cents at $12.44 per bushel and December corn was up 14-1/4 cents at $6.51-1/2 a bushel. December corn triggered buy-stops as it pushed through chart resistance at its 200-day moving average at $6.50.
Tim Hannagan, analyst with PFG Best in Chicago, noted corn, wheat and soybean futures on the Chicago Board of Trade are all higher for October as the last full week of the month winds down. "The theme this week was that funds were fat with profits coming in, and they were going to take profits. All the rallies we've seen this week were beautiful opportunities," Hannagan said.
Disappointing weekly US export sales data hung over the market, with the US Department of Agriculture reporting the lowest weekly net sales total for corn in 4-1/2 months, and the lowest in soybeans in four months. Weekly US wheat sales hit a near-five-month low. The data came a day after Egypt, the world's largest wheat buyer, bought 120,000 tonnes of Russian wheat at its latest tender in which no US wheat was offered. Also, corn fell Wednesday on news that Japan, the top buyer of US corn, had bought a cargo of corn from Ukraine, which is likely to harvest a record crop this year.