As global demand for wheat has increased, Australia flooding has decreased supplies. Thus far this month, both Morocco and Egypt moved forward with purchases of 175,000 metric tons of wheat.
"We've had a good run lately on the back of the major purchases by many of these North African net importers," Alexander Bos, an analyst at Macquarie Bank in London, told Bloomberg. "Wheat is just taking a breather."
As the largest importer of wheat in Asia in 2010, Japan purchased 149,114 tons of milling wheat from Canada and the U.S. on Thursday.
Shortly after 8 a.m. on Thursday, wheat futures dropped 0.69 percent, a 0.06 cent decrease to $7.9175 per bushel. Corn was down 0.7 percent, a 0.45 cent decrease to $6.3675 per bushel.
"This stems from yesterday, where rumors about an Australian sale of feed wheat to China took wind out of corn's sails," Bos said. "Corn, both on the U.S. and world balance sheets, is acutely thin at this time."
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