Soft Commodities Price Watch: Wheat Rallies as Egypt Returns to Market
iNVEZZ.com Wednesday, July 3rd: Grain futures have been broadly higher today with wheat prices rallying for a second day on expectations that Egypt will increase purchases.
On Tuesday, Egypt, which accounts for about six percent of the world’s wheat purchases, said that it had agreed to buy 180,000 metric tonnes of Ukrainian and Romanian wheat in its first tender since February.
“This tender supports the theory that Egypt doesn’t have as much wheat as they said they did,” Bloomberg quoted Mike Zuzolo, the president of US-based Global Commodity Analytics & Consulting, as saying. The Egyptian cabinet said a week ago that national stockpiles would meet demand until November 17.
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The top importer’s return to the market prompted an increase in the wheat price on the Chicago Board of Trade (CBOT) with futures climbing for a second consecutive session on Wednesday. As of 13:14 GMT the wheat price for September delivery was $6.6675 a bushel, up 1.29 percent on the day. The contract rose by as much as two percent earlier in the day to hit a session high of $6.7088 a bushel.
Elsewhere on the CBOT, the corn price for September delivery was 0.9 percent up at $5.3825 a bushel, after reaching a session high of $5.3863 a bushel earlier in the day. Corn futures were higher as investors returned to the market to seek cheap valuations after prices fell to $5.2737 a bushel on
Tuesday, the lowest level since November 23, 2010.
The soybean price for August delivery traded at $14.4825 a bushel, up one percent on the day. The August contract rose by as much as 1.1 percent earlier in the day to hit a session high of $14.4838 a bushel. The November contract was also up, having gained 1.05 percent to $12.5550 a bushel.
**Cocoa Price Rises, While Coffee Drops from Two-Week High**
Cocoa rose for a second day in London on Wednesday on speculation the next harvest in West Africa, the world’s largest-producing region, may be delayed due to dry weather in top growers Ivory Coast and Ghana.
By 13:22 GMT the cocoa price for September delivery on the ICE Futures U.S. Exchange has gained 1.29 percent to $2,206 a tonne. In London, the NYSE Liffe cocoa for delivery in September has advanced 0.6 percent to £1,483 a metric tonne.
!m[Cocoa Gains on Speculation of Crop Delays in West Africa](/uploads/story/3640/thumbs/pic1_inline.jpg)
Unlike cocoa, coffee has been trading lower today, dropping from the two-week high of $1.2477 a pound it reached yesterday. As investors sold positions to lock in gains from the recent rally, ICE Arabica coffee for September delivery has lost 1.6 percent to $1.2180 a pound. The September contract declined as much as 2.3 percent earlier in the session to hit a daily low of $1.2093 a pound. Robusta coffee for
September delivery in London fell 1.2 percent to $1,802 a tonne.
The sugar price has been little changed so far today, with the October contract down 0.1 percent to $0.1651 a pound in New York and down 0.2 percent to $476.60 a tonne in London.
Trading volumes have been rather thin so far today in the U.S where markets will be closed tomorrow for Independence Day.