Wheat futures were buoyed by concerns about reduced wheat production in the Black Sea area, particularly with tighter Russian wheat stocks rekindling ideas that exports from Russia will be eventually curtailed and lead to increased U.S. demand.
After futures slumped to a one-month low earlier in the week, wheat traders came back to addressing the issue of tighter wheat supplies from Russia and the Black Sea area, said John Kleist, analyst with ebottrading.com.
Moscow-based SovEcon, a grain analyst firm, on Thursday reported Russian wheat stocks had slumped by 30% to 10.6 million tons as of Aug. 1. Russia wheat stocks are at their lowest in nine years, SovEcon said.
The Russian news helped fuel a rebound in prices. Strategie grains, a French analyst group, on Thursday reduced its estimate of Russia's 2012-13 wheat exports by 4 million metric tons.
Analysts say the Russian news is rehashing hope that U.S. demand could improve once inventories of wheat from the Black Sea area are depleted.
Separately, corn futures ended higher, supported on ongoing concern about U.S. production after a historic drought gripped the U.S. Farm Belt and the need to keep prices at levels that will ration demand. CBOT December corn settled up 3 1/2 cents or 0.5% at $8.07 1/2.
U.S. soybean futures stumbled, as traders are apprehensive about pushing prices higher with favorable August crop conditions aiding crop potential. CBOT November soybeans ended down 9 1/4 cents or 0.6% to 16.25 1/4 a bushel.
