By Tony C. Dreibus July 23 (Bloomberg) -- Wheat rebounded from a two-week low, gaining the most in nine sessions, on speculation that demand will increase for grain from the U.S., the world’s biggest exporter. Japan bought 108,000 metric tons, including 87,000 tons from the U.S., the Ministry of Agriculture, Forestry and Fisheries said today. Nonghyup Feed Inc., South Korea’s biggest feed-grain buyer, said it is seeking 55,000 tons. The price has dropped 13 percent this year, partly because global production has increased as demand slowed. U.S. wheat exports “are competitive” with supplies from the world’s other producers, said Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas. “Soft-red winter wheat is at a good price. Global buyers are buying wheat, but they’re buying smaller amounts.” Wheat futures for September delivery rose 9.75 cents, or 1.9 percent, to $5.3175 a bushel on the Chicago Board of Trade. Yesterday, wheat futures dropped to $5.1325, the lowest since July 8. U.S. exporters sold 342,324 metric tons of wheat in the week ending July 16, the Department of Agriculture said today in a report. Japan bought 94,600 tons, and Nigeria purchased 77,800 tons, the agency said. “Nigeria’s back in” as an importer of wheat, Glenn said. “They’re just buying for their current needs. They’re just waiting for the market to find a bottom. In this market, why would they get aggressive until they seeing the market bottom?” Wheat is the fourth-biggest U.S. crop, valued at $16.6 billion in 2008, behind corn, soybeans and hay, government data show. To contact the reporter on this story: Tony C. Dreibus in Chicago at Tdreibus@bloomberg.net.

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