Wheat rebounded from the lowest level in eight weeks as biggest importer Egypt tendered to buy the grain and amid signs demand is expanding for supplies from the U.S., the world’s biggest exporter.
Brazil may favor U.S. supplies and keep imports from the country high in the next two years, Brandon Scott Crozier, chief executive officer of Nidera Brazil, told an industry meeting in Geneva yesterday. U.S. exporters shipped 2 million metric tons to Brazil in the first nine months, the most in 35 years, U.S. Department of Agriculture data show.
"Wheat sees strength from numerous tenders in the world market," Paul Georgy, the president of broker Allendale Inc., wrote in a market comment. "U.S. wheat is getting competitive. There is talk Brazil booked two cargoes of U.S. hard red winter wheat for shipment this year."
Wheat for December delivery rose 0.8 percent to $6.5075 a bushel on the Chicago Board of Trade by 6:13 a.m after falling to $6.4325 yesterday, the lowest intraday level since Sept. 18. Milling wheat for January delivery traded on NYSE Liffe in Paris advanced 0.7 percent to 204.75 euros ($275.21) a ton.
Egypt’s state grain buyer is seeking at least 60,000 tons of wheat in a tender today for shipment Dec. 1-15. Wheat has slumped 16 percent this year as global output heads for a record 706.38 million tons, according to the USDA.
Soybeans for January delivery declined 0.5 percent to $13.0825 a bushel after climbing for the sixth session yesterday, the longest rally since May 23. Corn for December delivery was little changed at $4.30 a bushel.