Wheat prices were poised for gains amid speculation that a slump into a bear market will spur demand from importers.
Egypt’s state grain authority bought 180,000 metric tons yesterday in its first international wheat tender for shipment in the season that began June 1. The country is the world’s biggest buyer. U.S. exporters sold about 570,100 tons in the week ended June 5, the most in four months, government data showed yesterday. Prices entered a bear market on June 11 on signs of rising global supplies.
"The market fell enough to start triggering some new export business," Chad Henderson, the president of Prime Agricultural Consultants Inc. in Brookfield, Wisconsin, said in a telephone interview. "The market can’t drop every day, so this is probably just a temporary low."
Wheat futures for July delivery advanced 0.2 percent to $5.865 a bushel at 11:46 a.m. on the Chicago Board of Trade, after touching $5.835, the lowest for a most-active contract since Feb. 11. Prices are heading for a fifth straight weekly loss, the longest streak since January.
"You’ve always got to find some area of support after such a big move," said Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney. "You’ve got a market that is short and getting shorter."
World inventories by the end of May will reach 188.6 million tons, the U.S. Department of Agriculture said June 11. That compares to last month’s estimate of 187.4 million tons.
Corn futures for December delivery rose 0.4 percent to $4.455 a bushel, after dropping to $4.3875 yesterday, the lowest since Feb. 11. Prices are heading for a fifth weekly loss as rain and warm weather forecast for the next two weeks boost the outlook for U.S. yield potential.
Soybean futures for delivery in November added 0.4 percent to $12.2175 a bushel.