Wheat futures on the Chicago Board of Trade rose to fresh 11-year highs by midsession on Wednesday on tight global supplies and strength in European wheat markets, traders said. As of 11:25 am CDT (1625 GMT), CBOT September wheat was up 10 cents at $6.72-1/2 after reaching $6.73-1/2, the highest spot wheat price since 1996.
December was up 9-1/2 at $6.92 and back months were up 6-3/4 to down 2-3/4 cents. The front four months hit contract highs. MF Global and Fortis each bought 200 to 300 December contracts, traders said.
Short covering ahead of the US Agriculture Department's August supply/demand report on Friday added support. The average estimate for US 2007/08 all-wheat production among analysts surveyed by Reuters was 2.130 billion bushels, down slightly from USDA's July figure of 2.138 billion. Most analysts expected the government to lower its US winter wheat estimate and raise its estimate of "other spring" wheat production. Some analysts also expected USDA to lower its forecasts of the European Union and/or Canadian wheat crops.
In Paris, the benchmark November milling wheat futures contract was up 3.5 euros at 219.5 euros per tonne. On the export front, Egypt's Holding Company for Food Industries was seeking up to 100,000 tonnes of wheat, US traders said. It was not clear if the HCFI was seeking only US wheat or optional origin. Results were expected on Wednesday.
Iraq finalised deals to buy 450,000 tonnes of wheat flour from several suppliers in the region for delivery in the next few months, Iraqi trade ministry sources said.
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