Chicago Wheat Futures rose more than 1% this morning, rebounding from losses from the previous session as global supply tightened and strong demand buoyed the market.
Corn is rising for the fifth year in a row, while soybeans are up 1.3%.
Wheat prices fell 1.2% on Friday as news of a new variant of Coronaviurs discovered in South Africa put pressure on global markets.
"We don't think the Omicron variant will significantly reduce wheat demand," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
Unfavorable weather has reduced the supply of wheat from important surplus regions in the northern hemisphere.
US corn and wheat exports exceeded expectations with 1.429 million tons of corn, mainly sold to Mexico and Canada, 58% more than the previous week.
US exporters sold 1.565 million tons of soybeans in the week of November 18, up 13% from the previous week and the four-week average, the US Department of Agriculture reported last week, largely due to soaring sales to China.The turnover was within the expectations of the analysts.
The global market was hit by concerns about the new variant of the coronavirus last week.
The variant of Omicron coronavirus spread around the world on Sunday, with new cases found in the Netherlands, Denmark and Australia. More and more countries imposed travel restrictions in order to isolate themselves.
The US stock exchanges are recovering for the hour. But nobody knows whether the variant is really more dangerous than the previously known virus.
Source
Hansa Terminhandel GmbH