Investing.com – Wheat futures were up on Tuesday, bouncing off an 11-month low as last week’s steep decline created bargain buying opportunities for investors and importers.
On the Chicago Mercantile Exchange, wheat futures for September delivery traded at USD6.3288 a bushel during European morning trade, surging 3.55%.
It earlier rose as much as 4.2% to hit a daily high of USD6.3625 a bushel.
Wheat prices plummeted nearly 8.5% last week to hit USD5.6200 a bushel, the lowest price since July 15, 2010 after the U.S. Department of Agriculture upwardly revised their estimates on total U.S. wheat stockpiles.
According to the data, total U.S. wheat inventories as of June 1 stood at 861 million bushels, 4.6% higher than initially projected.
U.S. farmers planted 13.627 million acres of wheat in the 2011-12 season, 2.6% more than previously estimated.
The higher-than-expected inventory figures prompted Goldman Sachs to lower its six-month forecast for wheat prices by 28% to USD6.00 a bushel, compared to a previous estimate of USD8.35 a bushel.
However, the steep decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid speculation of strengthening demand from grain importers in Asia.
South Korea's largest feedmaker Nonghyup Feed said earlier that it was seeking as much as 190,000 tonnes of U.S. wheat for feed.
Meanwhile, global financial service provider Morgan Stanley said in a report over the weekend that it remained “particularly skeptical of the stocks report, which indicated the smallest implied March-to-May feed and residual demand in over 30 years.”
The comments reiterated the belief of agribusiness financial service provider Rabobank, which said that the USDA may lower its estimates on U.S. acreage and stockpiles in its next release on August 11.
Elsewhere, corn for September delivery jumped 3% to trade at USD6.2450 a bushel, while soybeans for August delivery advanced 0.9% to trade at USD13.2663 a bushel during European morning trade.
On the Chicago Mercantile Exchange, wheat futures for September delivery traded at USD6.3288 a bushel during European morning trade, surging 3.55%.
It earlier rose as much as 4.2% to hit a daily high of USD6.3625 a bushel.
Wheat prices plummeted nearly 8.5% last week to hit USD5.6200 a bushel, the lowest price since July 15, 2010 after the U.S. Department of Agriculture upwardly revised their estimates on total U.S. wheat stockpiles.
According to the data, total U.S. wheat inventories as of June 1 stood at 861 million bushels, 4.6% higher than initially projected.
U.S. farmers planted 13.627 million acres of wheat in the 2011-12 season, 2.6% more than previously estimated.
The higher-than-expected inventory figures prompted Goldman Sachs to lower its six-month forecast for wheat prices by 28% to USD6.00 a bushel, compared to a previous estimate of USD8.35 a bushel.
However, the steep decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid speculation of strengthening demand from grain importers in Asia.
South Korea's largest feedmaker Nonghyup Feed said earlier that it was seeking as much as 190,000 tonnes of U.S. wheat for feed.
Meanwhile, global financial service provider Morgan Stanley said in a report over the weekend that it remained “particularly skeptical of the stocks report, which indicated the smallest implied March-to-May feed and residual demand in over 30 years.”
The comments reiterated the belief of agribusiness financial service provider Rabobank, which said that the USDA may lower its estimates on U.S. acreage and stockpiles in its next release on August 11.
Elsewhere, corn for September delivery jumped 3% to trade at USD6.2450 a bushel, while soybeans for August delivery advanced 0.9% to trade at USD13.2663 a bushel during European morning trade.