Saudi Tender Boosts Chicago Wheat Futures

Chicago wheat futures rose for a second consecutive session on Friday, moving away from a seven-week low. The recovery was driven by improved demand sentiment following Saudi Arabia's announcement that it is seeking to buy 535,000 metric tons of wheat for shipment in November and December.

The most-traded wheat contract on the Chicago Board of Trade increased by 0.7% at $6.87-3/4 a bushel, up from Thursday's low of $6.70-3/4. The dollar's strength continued to limit gains in US prices, however.

Saudi Arabia's tender was viewed as a sign that the recent price decline was generating fresh demand after it cancelled its previous wheat tender on September 7 due to high prices.