SINGAPORE- Chicago wheat futures bounced back on Wednesday, rising for the seventh out of last eight sessions, as shrinking surplus in key Northern Hemisphere suppliers kept prices near a nine-year high.
Soybeans gained ground on the back of strong Chinese demand for US supplies after a call between leaders of the two nations.
“We are getting into tight supply situation, especially for higher quality wheat,” a Singapore-based trader at an international trading company said.
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.4 percent to $8.23-1/2 a bushel. The market hit a December 2012 high of $8.29-1/2 a bushel earlier in the week.
Soybeans were up 0.3 percent at $12.54-1/2 a bushel and corn firmed 0.3 percent to $5.72-3/4 a bushel.
The wheat market is being driven higher by declining supplies in the Northern Hemisphere.
