Wheat turns higher as Egypt seeks supplies; corn also up
LONDON - Chicago wheat prices turned higher on Wednesday after earlier hitting a 3-week low as top buyer Egypt sought to take advantage of cheaper prices and an expected drop in temperatures next week raised concerns about crops in the Black Sea ...
LONDON - Chicago wheat prices turned higher on Wednesday after earlier hitting a 3-week low as top buyer Egypt sought to take advantage of cheaper prices and an expected drop in temperatures next week raised concerns about crops in the Black Sea region.
Corn and soybean prices also edged up although ample global supplies of both commodities helped to cap gains.
CBOT wheat prices rose with March up 0.5 percent at $4.74 a bushel by 1126 GMT. The contract had earlier dipped to a three-week low of $4.71.
Egypt's General Authority for Supply Commodities (GASC) set a tender on Tuesday to buy an unspecified amount of wheat from global suppliers for shipment from Jan. 21-31.
"Egypt is taking the opportunity of current prices conditions to set a new wheat tender with results expected this afternoon," Agritel said in a market note.
Agritel also noted that mild temperatures had left crops in many areas, including the Black Sea region, without snow cover leaving them more susceptible to frost damage if temperatures were to fall sharply.
March wheat in Paris rose 0.50 euros or 0.3 percent to 174.50 euros a ton after earlier equalling a 3-month low of 174.00 euros which was first hit on Dec. 17.
Corn prices also turned higher with CBOT March up 0.3 percent at $3.67-1/2 a bushel after earlier falling to a low of $3.65-1/2, its weakest level since Dec. 17.
Corn slid 1.6 percent in the previous session.
Earlier this month, the U.S. Department of Agriculture raised its outlook for domestic corn supplies more than expected, due to weakening export demand.
"Grain markets are likely to remain in a bearish trend as supply is huge and demand is really slow," said one Singapore-based trader. "Buyers are taking shipments hand-to-mouth because there is lot of supply around."
March soybeans rose a marginal 0.1 percent to $8.86-3/4 a bushel although the upside remained capped by the prospect of increased sales by Argentine farmers after the country's currency devaluation and export tax cuts.