Wheat futures on the Chicago Board of Trade were higher at midmorning on Wednesday, rebounding from Tuesday's declines with help from a surge in the soy market, traders said.
Soybean futures climbed more than a dime a bushel on speculative buying by UBS Warburg, and wheat and corn followed. Strength in outside markets including energies set the tone, with US crude oil prices rising $1 a barrel after a surprise cut in US crude inventories.
As of 10:55 am CST (1655 GMT), March wheat was up 4 cents at $4.63-1/2, most-active May was up 3-1/2 at $4.76-1/2 and new-crop July was up 3 cents at $4.88-1/2. Fortis Clearing Americas bought 300 May contracts, traders said.
Expectations of a rebound in global wheat production for 2007/08 continue to overhang the market. India's farm minister estimated the country's wheat output 73.5 million tonnes, up 1 million from previous estimate due to good weather.
However, an official with US Wheat Associates, a US export marketing group, said India might have to import wheat for a second straight year to build up stocks, despite prospects for a bumper crop.