U.S. wheat rose on September 23, rebounding from losses of more than 1.5 percent in the previous session, as forecasts for increased Chinese demand underpinned gains.
Chicago Board of Trade December wheat futures rose 0.3 percent to $6.48-1/4 per bushel by 0252 GMT, having lost 1.6 percent on September 20. “The support for wheat prices can be attributed to the forecast for China 2013-2014 wheat imports at 7.5 million metric tons after weather ruined China’s domestic crops,” said Joyce Liu, investment analyst with Phillip Futures Singapore.
The China National Grain and Oils Information Center on September 23 increased its projections for Chinese import demand to 7.5 million metric tons, having previously pegged imports at 6.5 million metric tons. The revised figure would be the highest imports for China in a decade. The bad weather that damaged the Chinese harvest in May and June has boosted demand for U.S. wheat.
U.S. exporters shipped more wheat to global buyers in the week ended September 12 than in any week for more than two decades, with most of the wheat going to Brazil and China, according to U.S. Department of Agriculture data.