US wheat futures may rise as lower prices spur demand

Wheat, little changed, may rise on speculation that the lowest prices in six weeks will spur overseas sales of US supplies as well as speculative investment.

The price dropped 8.1% in the previous six sessions. Investors who had bet prices would fall may be buying back contracts and closing out positions on expectations that the lower prices will spur importers to buy from the US, the world's largest shipper of the grain, said analyst Larry Glenn.

"We've had enough days of selling pressure that we were due for a bounce," Glenn said.

Wheat futures for July delivery rose 0.25 cent to US$4.6925 a bushel at 10:04 a.m. on the Chicago Board of Trade. On May 17, the price touched US$4.6625, the lowest level for a most-active contract since April 6. Before May 18, the commodity dropped 13% this year because of reduced demand for US grain and rising global stockpiles.