PARIS, July 7 (Reuters): Chicago wheat futures rose about 4.0 per cent on Thursday, recovering from a 4-1/2 month low a day earlier, as recession fears in financial markets abated.
The wheat market continued to wrestle with economic sentiment driving investment flows and an uncertain supply outlook as war in Ukraine disrupts huge Black Sea grain trade.
Corn and soybeans climbed more than 2.0 per cent to also move away from multi-month lows touched in the previous session, with the onset of crucial summer growth phases for US crops keeping attention on weather forecasts.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 4.1 per cent at $8.37-1/4 a bushel by 1218 GMT, after dropping to its lowest since Feb 17 at $7.85-1/4 on Wednesday.
Corn rose 2.3 per cent to $5.98-1/2 a bushel and soybeans gained 2.9 per cent to $13.60-3/4 a bushel.
Chart support levels, an easing in the dollar from 20-year highs and an uptick in crude oil encouraged grain markets to bounce, traders said.
Wednesday's low in wheat took the markets fall since mid-May to nearly 40 per cent and brought prices back to levels before the start of Russia's invasion of Ukraine.
In addition to macro-economic concerns, northern hemisphere harvesting and discussions over a sea corridor for Ukrainian grain exports have curbed wheat prices in the past month.
However, traders and analysts see scope for renewed rallies given brisk demand from importers and the protracted conflict in Ukraine.
Egypt's state grains buyer GASC purchased about 63,000 tonnes of German wheat in a direct deal this week, sources said on Thursday, adding to large import purchases since last week.
The European Union is heading towards a smaller wheat crop as drought and extreme heat shrink yields in some regions, offsetting more favourable prospects elsewhere after timely rain, a Reuters poll showed.
Wheat rebounds 4.0pc as recession jitters abate
FE Team | Published: July 08, 2022 00:03:22
Wheat rebounds 4.0pc as recession jitters abate
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