Wheat surges on speculation demand will climb

Wheat futures fell to a five-month low on Wednesday, but the sell-off drove speculators and commercial buyers to buy up the commodity Thursday as they looked to capitalize on the lower prices, sending wheat up.Wheat futures fell to a five-month low on Wednesday, but the sell-off drove speculators and commercial buyers to buy up the commodity Thursday as they looked to capitalize on the lower prices, sending wheat up.

The U.S. Department of Agriculture announced Thursday that U.S. exporters sold 858,822 metric tons of wheat in the week ended March 10; that figure is 31 percent higher than sales the week prior. The USDA said that while demand for wheat may have fallen in Japan after Friday's earthquake and tsunami, it expects exports to the country to rebound over the next few months.The U.S. Department of Agriculture announced Thursday that U.S. exporters sold 858,822 metric tons of wheat in the week ended March 10; that figure is 31 percent higher than sales the week prior. The USDA said that while demand for wheat may have fallen in Japan after Friday's earthquake and tsunami, it expects exports to the country to rebound over the next few months.

While wheat fell earlier in the week, many traders have stopped selling off their holdings, according to Ag Watch Market Advisers president Dewey Strickler. "The selling has abated for the time being, and the market is getting a little chance to catch its breath," Strickler told Bloomberg. "Those that had long positions on and were losing out are pretty much out of the market."While wheat fell earlier in the week, many traders have stopped selling off their holdings, according to Ag Watch Market Advisers president Dewey Strickler. "The selling has abated for the time being, and the market is getting a little chance to catch its breath," Strickler told Bloomberg. "Those that had long positions on and were losing out are pretty much out of the market."

On the Chicago Board of Trade on Thursday, wheat futures for May delivery climbed 7.25 percent, or 48 cents, to settle at $7.10 per bushel; a close at that price would mark the biggest gain for the most-active contract in over three months. On the Chicago Board of Trade on Thursday, wheat futures for May delivery climbed 7.25 percent, or 48 cents, to settle at $7.10 per bushel; a close at that price would mark the biggest gain for the most-active contract in over three months.