Wheat futures at the Chicago Board of Trade were sharply higher at midsession on Thursday, rallying from recent declines on bullish export news, including sales of US wheat to Iraq and Egypt, traders said.
"The world consumer has absolutely no coverage, and he has all of a sudden found out that we've got the tightest carry-over since (1977)," Fortis Clearing Americas analyst Charlie Sernatinger said.
As of 11:25 am CDT (1625 GMT), September wheat was up 19 cents, or 3.3 percent, at $6.02 per bushel, with back months up 6-1/4 to 17 cents. Spot July, which is in delivery, was up 18 cents at $5.89-1/2.
Tenco Inc bought 500 September contracts, traders said. The market got a boost after the US Department of Agriculture said private exporters reported the sale of 100,000 tonnes of US hard red winter wheat to Iraq for 2007/08. "They are down to fumes on their stocks," Sernatinger said of Iraqi grain buyers.
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