Oct. 27 (Bloomberg) -- Wheat futures rose the most in two weeks as Europe’s plan to ease the region’s debt crisis eroded the value of the dollar and bolstered prospects for U.S. grain exports.
The dollar tumbled to a seven-week low against a basket of six major currencies, and global equities rallied, after European leaders agreed to expand a bailout. The Standard & Poor’s GSCI Index of 24 commodities climbed to the highest in almost six weeks. Yesterday, commodities including wheat fell on concern that failure to reach an agreement on a debt plan in Europe would limit economic growth.
“Today, our dollar is plummeting, and that’s giving our grain markets some strength,” Tom Leffler, the owner of Leffler Commodities LLC in Augusta, Kansas, said in a telephone interview. “We’re going to recover from yesterday’s losses, thanks to the European situation and the dollar being down hard.”
Wheat futures for December delivery jumped 4 percent to settle at $6.44 a bushel at 1:15 p.m. on the Chicago Board of Trade, capping the biggest gain since Oct. 11. Yesterday, the price declined 2.6 percent, the most since Oct. 12. Futures have still slumped 19 percent this year.
Wheat is the fourth-largest U.S. crop, valued at $13 billion in 2010, behind corn, soybeans and hay, government data show.
--Editors: Millie Munshi, Steve Stroth
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