Wheat futures bounced back from both a 48-hour slump and concerns about unrest in Egypt causing imports of the grain to slow, Bloomberg reports.
Shortly after 8 a.m., wheat futures were up 1.27 percent to $8.3625 per bushel. During the past two days, futures dropped 3.6 percent amidst about riots in the biggest wheat buyer.
The unrest in Egypt "should not be detrimental to agricultural commodities," Michael Pitts, a commodity sales director at National Australia Bank, told Bloomberg. "Egypt has consistently been buying over the last 12 months. They bought forward and they would have very small stocks."
Hosni Mubarak, the autocratic president of the Egypt for the past three decades, is now under fierce pressure unprecedented during his tenure as leader. Despite naming a vice president and a prime minister, Mubarak’s reign is expected to continue encountering resistance as the Arab nation confronts riots, escaped prisoners, looters and violence.
"The problem will be if the financial markets really melt down in Egypt," Tom Puddy, market head of CBH Group in Australia, told the news service. "Your number one priority, being an exporter, is security of payment."
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