Key Moments
- Chicago Board of Trade wheat futures rose 0.7% to $6.87-3/4 per bushel, extending a rebound from a seven-week low of $6.70-3/4.
- Saudi Arabia issued a tender to buy 535,000 metric tons of wheat for November and December shipment after canceling a prior tender on September 7.
- Corn and soybean futures retreated, with corn pressured by a larger than expected USDA stocks estimate and soybeans weighed down by a record US harvest.
Wheat Futures Rebound on Fresh Import Demand
Chicago wheat futures advanced for a second straight session on Friday, adding to a recovery from a recent seven-week low as a new import tender from Saudi Arabia bolstered demand expectations. Gains remained capped, however, by continued strength in the US dollar.
The most actively traded wheat contract on the Chicago Board of Trade climbed 0.7% to $6.87-3/4 a bushel by 1155 GMT. The contract had fallen to $6.70-3/4 on Thursday, marking its lowest level in seven weeks, before rebounding.
Saudi Arabia Tender Signals Price-Driven Demand
Saudi Arabia announced on Thursday that it is seeking to purchase 535,000 metric tons of wheat for shipment in November and December. Market participants interpreted the move as evidence that the recent drop in prices was starting to unlock new buying interest.
The latest tender comes after Saudi Arabia canceled its previous wheat tender on September 7, citing high prices. The renewed buying interest has been viewed as a supportive factor for futures prices, helping the market move away from recent lows.
| Contract / Item | Detail |
|---|---|
| CBOT most-traded wheat | Up 0.7% at $6.87-3/4 per bushel by 1155 GMT |
| Recent wheat low | $6.70-3/4 per bushel on Thursday (seven-week low) |
| Saudi wheat tender | 535,000 metric tons for November and December shipment |
| Previous Saudi tender | Canceled on September 7 due to high prices |
Corn Pressured by USDA Stocks Estimate
Corn futures moved lower, hovering near a six-week trough. The market remained under pressure following Wednesday’s larger than expected estimate of US corn stocks from the US Department of Agriculture, which weighed on prices and sentiment.
Soybeans Slide on Record US Harvest
Soybean futures also declined. Ongoing harvesting activity in the United States continued to exert downward pressure on prices, with the current US soybean harvest projected to be the largest on record.
Macro Focus on US Labor Data and Rates
Across agricultural markets, investors were monitoring upcoming monthly US employment data for clues on potential changes in US interest rates, which could in turn influence currency moves and broader commodity pricing.
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