LONDON - Chicago wheat futures rose on Friday, boosted by strong export sales with the recent drop in prices leading to a pick-up in demand in the physical market.
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.5% to $7.98-3/4 a bushel, as of 1100 GMT.
Exports of U.S. wheat in the week ended July 7 totalled more than 1 million tonnes, U.S. government data showed on Thursday, the biggest weekly tally since March 2020.
"Chicago wheat is still being supported by the huge export sales reported for U.S. wheat on Thursday, including to China which had been rumoured," one trader said.
"The fall in prices this month to their levels before the Ukraine war has generated more importer interest, with the Philippines buying today following steady wheat buying by other countries this week."
Wheat has also gained support from dry weather in Europe.
Consultancy Strategie Grains on Thursday cut its forecasts for this year's grain crops in the European Union.
The EU wheat crop was expected at 123.3 million tonnes, down from 124.4 million projected in June and below the revised 129.9 million tonnes harvested last year, it said in a monthly report.
Corn prices also rose with the most active contract climbing 1% to $6.07-1/4 a bushel while soybeans were 0.4% higher at $13.45-1/2 a bushel.
"Corn is supported today by forecasts of hot and dry weather in the U.S. Midwest in coming days which is unwelcome for corn. This will create worry about corn yields," another trader said.
"Markets are starting to put more of a weather premium into U.S. corn prices," the trader added.
Soybeans rose more modestly although the weather outlook did provide some support.
"The impact is less clear (for soybeans) than for corn as August is the important crop development month in the U.S.," the trader said.
(Additional reporting by Naveen Thukral in Singapore and Michael Hogan in Hamburg; Editing by Rashmi Aich and Anil D'Silva)