Commodity News Service Canada / Minneapolis, Kansas City and Chicago wheat futures all closed higher on Thursday, underpinned by ideas that the markets are oversold, industry watchers said.
A smaller-than-expected U.S. winter wheat planted area was bullish, as was strong export demand for the U.S. product, brokers said. Reports that Egypt purchased U.S. wheat earlier in the week for the first time since February 2013 added to the upward push seen in prices. Egypt is the world’s largest importer of wheat. However, expectations of large global carryover stocks limited any further gains.
Prices in US$ per bushel:
|CBOT Wheat||Mar||5.7275||up 0.0500|
|MGEX Spring Wheat||Mar||6.2400||up 0.1000|
|KCBT Red Wheat||Mar||6.2950||up 0.0900|
According to the U.S. Department of Agriculture, European Union wheat exports are expected to total 26 million tonnes in 2013-14, which would be a record.
Egypt’s General Authority for Supply Commodities said the country is looking for 60,000 tonnes of wheat for shipment in mid-to-late February.
According to the Japanese ministry of agriculture, 42,740 tonnes of feed wheat was purchased for livestock use on Wednesday. / CNSC