Wheat recovers on demand hopes while corn and soybeans hold near lows
DBA•Chicago wheat futures rose 0.7% to $6.87-3/4 a bushel after Saudi Arabia sought 535,000 metric tons for November and December shipment. Corn fell 0.4% and soybeans slipped 0.6%, staying near recent lows.
1. Wheat gains on tender
Chicago wheat futures rose for a second session, recovering from a seven-week low, after Saudi Arabia announced a tender to buy 535,000 metric tons for shipment in November and December. Traders viewed the tender as a sign that lower prices were reviving demand; Saudi Arabia had cancelled its previous tender on September 7 because of high prices.
2. Dollar caps US prices
By 1155 GMT, the most-traded Chicago wheat contract was up 0.7% at $6.87-3/4 a bushel. A dollar index surge to its highest in more than a year restrained US prices by making dollar-denominated commodities more expensive for overseas buyers. Euronext wheat rose 1.7%, supported by a weaker euro and expectations European suppliers could win Saudi sales.
3. Corn and soybeans slip
Corn fell 0.4% to $5.00-1/4 a bushel, near a six-week low, after a larger-than-expected estimate of US corn stocks. Soybeans lost 0.6% to $12.76-3/4 a bushel as the ongoing US harvest was projected to be the biggest on record. Drier Midwest weather could help limit harvest delays after recent rain.
