BLBG:Wheat Advances for Second Day as Egypt Buys From U.S.; Corn, Soybeans Gain
Wheat gained as Egypt, the world’s largest buyer, bought U.S. supplies, signaling demand may be shifting away from Russia and other producers. Corn and soybeans also advanced.
Wheat for May delivery gained 0.5 percent to $6.3825 a bushel on the Chicago Board of Trade at 2:37 p.m. Singapore time, taking gains for the most-active contract to 1.3 percent this week.
Egypt bought 180,000 metric tons of U.S. wheat at a tender yesterday, said Nomani Nomani, vice chairman of the General Authority for Supply Commodities. That adds to the 55,000 tons bought from the U.S. over the weekend.
“The latest purchase indicates the U.S. supplies are not overvalued,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia said in a report today.
Corn for May delivery climbed 0.4 percent to $6.4225 a bushel in Chicago, taking gains for the most-active contract to 1.7 percent this week.
In the corn growing areas of northeast China, the second- largest grower and consumer after the U.S., soil moisture level is low after dry weather in autumn and winter, Australia & New Zealand Banking Group Ltd. said in a report. The region, which grows 30 percent to 40 percent of the nation’s crop, is “notably dry,” it said.
“This will make timely rains around planting more important than normal,” the bank said. Planting is due in a few months, it said.
Soybeans for May-delivery rose 0.5 percent to $12.71 a bushel. The most-active contract is set for a 3.4 percent gain this week, the biggest since the five days ended Oct. 14.
Argentina’s soybean harvest may reach 43.5 million tons to 45 million tons, the Agriculture Ministry said yesterday. That compares with a 48 million-ton forecast by the U.S. Department of Agriculture on Feb. 9.
“Recent developments in the soybean market have so far buttressed” the bullish view on the oilseed in 2012, Abah Ofon, an analyst Standard Chartered Plc, said in an e-mail.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
