CHICAGO: U.S. wheat futures jumped on Thursday as a series of import tenders and fears of rain damage to Australia’s harvest took attention away from concerns over the spread of the new coronavirus variant.
Soybean and corn futures also advanced.
Global demand for wheat put renewed focus on the ebbing availability of milling-grade wheat, with top supplier Russia considering further export restrictions and alternative supply from Australia made uncertain by torrential rain.
Saudi Arabia said it is seeking 535,000 tonnes of wheat, after Egypt on Monday bought 600,000 tonnes in its biggest purchase in years. Tunisia and Jordan also made purchases.
“Wheat, particularly in position with global exporters, is in very short supply,” said Jim Gerlach, president of Indiana-based broker AC Trading.
The most-active wheat contract on the Chicago Board Of Trade (CBOT) was up 26 cents at $8.16-1/2 a bushel by 11:00 a.m. CST (1700 GMT).
The market extended a rebound from near three-week lows struck on Tuesday, when investor jitters over the impact of the new Omicron variant sparked a broad sell-off.
Inflationary pressures helped lift grain prices, Gerlach said.
“Everything is colored right now by this underlying inflationary current,” he said.
In Europe, wheat on Paris-based Euronext also climbed.
Supply concerns last month pushed CBOT wheat to a nine-year high and Euronext to an all-time peak.
“The supply shortfall in the northern hemisphere is pushing buyers to go for more Australian wheat,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney. “But we have more lower quality wheat crop.”
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