Saudi Wheat Tender Boosts CBOT Prices Off Seven-Week Lows

Saudi Arabia's decision to reopen its buying spigot has given Chicago wheat futures a boost, lifting prices off seven-week lows. The country issued a 535,000-metric-ton import tender on Thursday, signaling that lower levels are pulling demand back into the market.

The return of Saudi Arabia as a buyer is significant because it reveals where real-world buyers start stepping in. Its previous purchase was canceled on September 7 when prices looked too high, but now its return suggests that US wheat has become more competitive globally.

Corn and soybeans, however, have stayed under pressure from hefty US supplies and a strong dollar, which makes US-exported grain more expensive for overseas buyers. A weaker euro can make European wheat look relatively cheaper in global tenders, but the stronger dollar is currently dominating the market.