Wheat Prices Rebound on Weaker Dollar, Black Sea Concerns
Wheat prices rebounded from a four-week low on Friday as traders took into account reports of further attacks in the Black Sea Export Zone and a weaker US Dollar. The Chicago Board of Trade's most active contract for wheat futures rose after hitting its lowest level since July 22.
The rebound was also bolstered by a weaker US Dollar, which makes imports cheaper and increases demand for grains. However, corn futures were steady after a volatile day of trading, with the most active contract ending lower for the second consecutive week.
Soybean prices fell as the bullish tone faded after news of Chinese purchases earlier in the day. Traders said that China has purchased at least 10 additional cargoes of US soybeans, part of a flurry of purchases before President Xi Jinping's expected visit to the US next month.
The purchases are the result of trade talks between Washington and Beijing, which included Chinese promises to buy 25 million metric tonnes of US soybeans. China has purchased about 6 million tonnes so far for delivery in the US harvest year that begins on September 1.