SINGAPORE/PARIS: Chicago wheat futures rose for the first time in three sessions on bargain buying on Wednesday while soybean futures hit a three-week high, as strong demand in the US domestic market underpinned prices.
The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 1% at $5.76-1/2 a bushel as of 1115 GMT.
Soybeans were up 0.6% at $13.04 a bushel, after rising earlier in the session to $13.09-3/4 a bushel, the highest since Sept. 27. Corn rose 0.7% to $4.92-1/4 bushel.
“There is some buying opportunity in wheat, given the decline in prices,” said one Singapore-based trader. “China has been actively taking cargoes from Australia and other origins.”
However, large volumes of competitive exports from Russia, the world’s biggest shipper, continue to weigh on wheat prices, traders said.
Indian wheat prices surged to an eight-month high on Tuesday, propelled by strong demand for big festivals, limited supplies and as import duty makes overseas buying unfeasible for domestic flour mills.
The increasing prices may prompt the government to release more stocks from inventories and eliminate import duties on the cereal to bolster supplies and control prices ahead of important state assembly elections and a general election next year. Rising wheat prices could contribute to food inflation.
Industry data released on Monday showed monthly US soybean crush at its highest-ever level for September, and end-of-month soyoil stocks at their lowest in nearly nine years.
Commodity funds were net sellers of CBOT wheat, corn and soyoil futures contracts on Tuesday and net buyers of soybean and soymeal futures, traders said.