Wheat rebounded, breaking a four-day losing streak, amid signs of increasing global grain demand.
Egypt, Tunisia and Algeria have been seeking grains on the world market, with Egypt receiving multiple offers on Wednesday. As demand firms, wheat supplies are in question as fighting between Russia and Ukraine in the critical Black Sea agriculture hub escalates. Meanwhile, in Canada, a key grower, dryness has hurt crops and production is seen about 14% lower than last year’s crop.
Some traders are also covering short positions as the month winds down, helping to support prices, said Charlie Sernatinger, head of grains at Marex Capital Markets.
Chicago wheat rose as much as 1.7%. Still, benchmark wheat prices remain more than 20% below last year’s levels following bumper harvests in other parts of the Northern Hemisphere. On Wednesday, corn and soybeans were both down slightly.
--With assistance from Ben Sharples.
