CHICAGO: Chicago wheat futures gained on Thursday after reaching two-month lows as liquidation by investment funds abated and supply tensions remained despite talks to reopen Ukrainian ports that have been blocked since Russia’s invasion.

A large wheat purchase by Egypt and a report the US government may retroactively raise an ethanol blending mandate lent support to cereal markets.

Soybeans firmed, underpinned by export demand and tight US supplies.

The most-active wheat contract on the Chicago Board of Trade (CBOT) added 14-3/4 cents to $10.55-3/4 a bushel by 11:07 a.m. (1607 GMT), after falling to the lowest since early April on Wednesday.

CBOT old-crop July corn eased 1-1/2 cents 7.29-3/4 a bushel, while new-crop December corn added 2-1/4 cents to $6.93-3/4 a bushel.

Soybeans firmed 34-1/4 cents to $17.24-3/4 a bushel.

Wheat futures found technical resistance after a two-day pullback earlier in the week, fuelled by diplomatic efforts to create a Black Sea shipping channel for Ukrainian grain.

“It’s just a corrective action,” said Tom Fritz, commodity broker at EFG Group. “We still have the unknown around Ukraine shipments, but look at the price action. We still have some pretty big-time volatility here.”

Analysts are cautious about the likelihood of a deal over Ukrainian ports while fighting continues in Ukraine and as Moscow seeks sanctions concessions rejected by Kyiv and its Western allies.