(Reuters) – U.S. wheat futures rose for the first time in six sessions on Thursday, snapping the longest losing streak in a month, although forecasts for huge global supplies capped gains.
Soybeans recovered slightly from the previous session’s losses of more than 1.5 percent, while corn was flat.
Chicago Board of Trade March wheat futures rose 0.2 percent to $6.14 a bushel by 0331 GMT, retaining most of the previous session’s sharp drop of 1.2 percent.
Wheat shed almost 4.5 percent over the past five sessions amid forecasts by the U.S. Department of Agriculture for near record global stocks.
Despite the drop, freight costs make wheat from the United States uncompetitive versus supplies from other destinations, analysts said, illustrated by Egypt’s decision earlier this week to bypass U.S. supplies in its latest purchase.
This will continue to weigh on CBOT prices, they added
“There’s nothing fundamental at play today,” said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
“It’s coming into the Christmas break, so people are squaring some positions.”
January soybeans rose 0.26 percent to $13.27-1/2 a bushel, having slumped 1.7 percent in the previous session.
Soybeans came under pressure from profit taking after the oilseed rallied earlier this week.
March corn futures were little changed at $4.24-3/4 a bushel, having closed down 0.4 percent in the previous session.
A firmer U.S. dollar following the decision by the U.S. Federal Reserve to trim its aggressive bond-buying program kept a lid on gains. A strong dollar makes commodities priced in the greenback expensive for holders of other currencies.
The U.S. stimulus has been a key driver of investment in global commodities.
