Wheat is gaining back some of its ground following its four year low that it experienced last week.
Reuters reported that the Chicago Board of Trade front-month wheat rose 0.5 percent to $4.81-1/2 a bushel by 11:56 GMT Thursday, having closed up 0.3 percent in the previous session. Wheat fell to a four-year low of $4.66-1/4 a bushel on Sept. 25. Some analysts say that an increase in Russian wheat prices, linked to a rising domestic market, has weakened overseas sales, even though there is a near-record crop in one of the top exporters in the world.
"You would think that wheat has based out, while the reports that Russia has withdrawn from the export market are also boosting sentiment," said Paul Deane, an agricultural economist at ANZ Bank in a comment for Reuters.
According to Bloomberg, some of wheat's gain may be attributed to the fact that Egypt, the world's biggest wheat buyer, agreed to purchase 120,000 tons of grain from France yesterday.
Regardless, Reuters expects that any gains that wheat makes will remain modest in light of expectations for a record global harvest.
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