April 8 (Bloomberg) -- Wheat futures advanced for a second day as China, the world’s biggest consumer, bought about 960,000 metric tons of U.S. wheat after prices plunged 30 percent from a four-year high in July. Corn and soybeans rose.
China bought the soft red winter wheat last week, state- owned researcher Grain.gov.cn said in an e-mailed report today, without saying where it got the information. Shipments are from June to December from the Gulf of Mexico, it said.
"It’s more opportunistic to a large extent," Michael Pitts, a commodity sales director at National Australia Bank Ltd., said from Sydney. "Soft wheat has relatively more attractive prices compared with domestic availability."
Wheat for May delivery rose 0.5 percent to $7.025 a bushel on the Chicago Board of Trade by 6:53 a.m. local time. Volume was 33 percent higher than the average for the past 100 days at that time, according to data compiled by Bloomberg. Prices have dropped from $9.4725 on July 23.
Milling wheat futures traded on NYSE Liffe in Paris were up 0.4 percent.
The size and timing of the purchases indicate they may have been made for the state reserves, said Li Qiang, chairman of Shanghai JC Intelligence Co., the country’s biggest independent agricultural market researcher. There was no immediate shortage of wheat in China, he said.
Corn for May delivery rose 0.8 percent to $6.3375 a bushel in Chicago and soybeans gained 1.1 percent to $13.77 a bushel.
--With assistance from William Bi in Beijing. Editor: James Poole
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