By Ilan Brat
CHICAGO--U.S. wheat futures climbed on Friday, bolstered by new
export sales and a weakening of the dollar.
Corn oscillated between gains and losses and soybeans were
lower.
Wheat futures rose, in part because the greenback was down. A
decline in the dollar helps make U.S. supplies more affordable for
foreign buyers. The overall strength of the dollar in the last year
has battered grains and soybeans in general and dragged
particularly on wheat, one of the most global of grains. It has
helped make European and Russian wheat more attractive to big
buyers such as Egypt and relegated U.S. supplies to a position
farther down buyers' preferences list.
But as wheat prices have declined to around $5 a bushel, some
investors say it may be starting to stoke foreign demand.
On Friday morning, U.S. Department of Agriculture reported new
export sales of wheat to unspecified destinations.
With wheat, "we're starting to get a little more into a value
zone" that could drive foreign demand, said Jason Britt, president
of Central States Commodities, a Kansas City, Mo.-based
brokerage.
Chicago Board of Trade wheat futures for September delivery were
recently up 4 1/2 cents, or 0.9%, to $5 3/4 a bushel.
Corn futures swung from gains to losses and gains again
throughout the morning session. Mr. Britt said uncertainty about
whether an extremely rainy June and early July and a subsequent
spell of benign weather would make output more or less than
expected was a big factor driving the volatility.
"It feels like we're caught up a little bit in the summer
doldrums," he said.
CBOT corn futures for September delivery were recently down 3/4
cent, or 0.2%, to $3.72 1/2 a bushel.
Soybean futures came under pressure from a cancellation of an
export order to China.
CBOT August soybean futures shed 8 1/4 cents, or 0.8, at $9.82 a
bushel.
Write to Ilan Brat at ilan.brat@wsj.com
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