Wheat climbed for a second day on speculation that a slump to the lowest level in more than a year may have encouraged importers led by Egypt to lock in supplies. Corn and soybeans gained.
Wheat for delivery in September rose as much as 0.7 percent to $6.63 a bushel on the Chicago Board of Trade, and was at $6.625 by 1:11 p.m. in Hong Kong on volume that was 20 percent below the 100-day average for that time of day. Prices touched $6.5225 yesterday, the lowest since June 2012, on prospects for increased global supplies.
Egypt, the largest importer, bought 180,000 metric tons of Ukrainian and Romanian wheat yesterday in its first tender since February, spurring a rebound. Nonghyup Feed Inc., South Korea’s biggest feedmiller, also bought wheat for delivery in October, the company said, without providing the quantity. The grain climbed 0.5 percent yesterday, snapping eight days of losses.
“Importers and investors are buying on dips,” Tetsu Emori, a commodity fund manager at Astmax Asset Management Inc., said by phone from Tokyo. “Buyers are looking for raw materials and that should be supportive factors in the market.”
Egypt has struggled to pay for food and fuel as foreign-currency reserves dwindled amid political upheaval and social unrest. The military on July 1 gave President Mohamed Mursi two days to find a solution to the country’s political impasse.
Corn for December delivery rose as much as 0.6 percent to $5.055 a bushel in Chicago, before trading at $5.0475. Futures fell to $4.965 yesterday, the first time the most-active contract has traded below $5 since October 2010.
China, the world’s second-largest user, bought three cargoes of new-crop U.S. corn, state-researcher Grain.Gov.Cn said in an e-mailed report. The nation’s total purchases of new-crop corn have exceeded 2.8 million tons, it said. New-crop shipments from the U.S. begin Sept. 1.
Total imports by China from all origins will more than double to a record 7 million tons in the year beginning Oct. 1, according to the U.S. Department of Agriculture.
Soybeans for November delivery gained much as 0.5 percent to $12.485 a bushel in Chicago, before trading at $12.465.