Chicago Board of Trade wheat futures higher on Wednesday, rallying from early declines on technical buying after the September contract stayed above the previous day's low, traders said. Additional support from some private forecasts for hot and dry weather in the Black Sea region that could stress summer grain crops.
MGEX spring wheat and K.C. hard red winter wheat futures closed higher on bargain buying after the front contracts in both markets fell to five-year lows this week.
Market capped by weak export demand for ample US and world wheat supplies.
Egypt's main state wheat buyer purchased 120,000 tonnes of Russian wheat at roughly $188 per ton FOB. Underscoring views that US wheat is overpriced, Cargill in the tender offered US soft red winter wheat priced at $216 per tonne FOB and US hard red winter wheat at $224 FOB.
Consulting firm Agritel said France will produce 38.9 million tonnes of soft wheat this year while another firm, ODA Group, put the French crop at 39.4 million tonnes, both above an official record of 38.2 million set in 1998.
Informa Economics estimated US 2015/16 all-wheat production at 2.159 billion bushels, above USDA's July figure of 2.148 billion.
Russian officials will start working on ways to change wheat export tariffs in about two weeks, Deputy Agriculture Minister Yevgeny Gromyko said.
Comments
Comments are closed.