Chicago wheat extends rebound on improving demand

Chicago wheat extends rebound on improving demand

PARIS/BEIJING - Chicago wheat futures extended gains on Wednesday, lifted by signs of improving demand and bargain buying after three straight sessions of losses pushed the contract to its lowest level since February. Corn was flat and soybeans edged higher.

The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 1.33% to $9.48 a bushel. Corn was unchanged at $6.59-1/4 a bushel and soybeans were up 0.5% at $14.70-1/4 a bushel. Jordan's state grains buyer purchased about 60,000 tonnes of hard milling wheat to be sourced from optional origins in a tender that closed on Tuesday.

Indicating signs of demand, Bangladesh, Pakistan and Egypt also launched tenders to purchase wheat. The reports of more demand supported Chicago wheat prices.

"Grain market rebounded on buying interests and as Egypt announced a wheat tender. In addition, after last week's sharp decline, traders are correcting their positions before tomorrow's USDA report," French consultancy Agritel said in a note. The U.S. Department of Agriculture (USDA) will issue its closely watched U.S. acreage and stocks data on Thursday.

Analysts expect the USDA in its acreage report to show an upward revision to this year's corn plantings and a cut to the estimated soybean and spring wheat area.

The