Black Sea Attacks and Weaker Dollar Boost Wheat Prices

Chicago Board of Trade Wheat futures rebounded from a four-week low on Friday, boosted by a weaker US dollar and assessments of further attacks in the Black Sea Export Zone. The price of corn remained steady after a volatile trading day.

The price of soybeans fell as the bullish tone faded following news of Chinese purchases that had earlier supported the price. Traders noted that China has purchased at least 10 additional cargoes of US soya beans, part of a flurry of purchases ahead of President Xi Jinping's expected visit to the US next month.

These deals are the result of trade talks between Washington and Beijing, which included Chinese promises to purchase 25 million metric tonnes of US soybeans. China has already purchased about 6 million tonnes of soybeans for delivery in the US harvest year that begins on September 1, according to a US source.

Dennis Voznesenski, Commonwealth Bank analyst, said: 'The grain is there.' The big question now is whether it can be extracted. This determines whether or not prices will rise.