Wheat gained as Egypt, the world’s biggest buyer, issued its second import tender for the grain in two weeks and after a U.S. government report showed deteriorating crop conditions for the biggest exporter.
Egypt’s state grain buyer is seeking at least 60,000 metric tons of wheat for shipment Dec. 11-20 in a tender today. The country’s General Authority for Supply Commodities bought 240,000 tons of wheat from France and Romania last week.
"The competition between Black Sea origin and French origin will be followed with interest, both in terms of prices as well as offered volume," Paris-based farm adviser Agritel wrote in a market comment.
Wheat for March delivery rose 0.5 percent to $6.56 a bushel on the Chicago Board of Trade by 7:21 a.m. local time. Milling wheat for January delivery traded on NYSE Liffe in Paris added 0.3 percent to 204.50 euros ($276) a ton.
Lebanon will tender tomorrow to buy 20,000 tons of wheat, the country’s economy ministry said, while Japan is seeking to buy 133,480 tons of milling wheat in a Nov. 21 tender, the most since August.
Chicago wheat futures have slipped 16 percent this year as global production heads for a record 706.38 million tons, according to the U.S. Department of Agriculture.
An estimated 63 percent of the U.S. crop that will be harvested starting May was in good or excellent condition as of Nov. 17, compared with 65 percent a week earlier, the USDA reported yesterday. The crop may have been affected by tornadoes on Nov. 17, according to AccuWeather Inc.
"A reduction in crop conditions will provide support for prices," Vanessa Tan, an analyst at Phillip Futures Pte, said by phone from Singapore. "There may have been some adverse impact" from tornadoes that swept through the U.S. Midwest.
Plantings in Illinois, Indiana, Kentucky, Ohio and Michigan "might be sensitive," Evan Duffey, a meteorologist at AccuWeather said yesterday. The states account for 10 to 15 percent of U.S. winter wheat plantings, he said.
Soybeans for January delivery dropped 0.1 percent to $12.8575 a bushel. Corn for March delivery added 0.5 percent to $4.2325 a bushel.