Soft commodity exchange traded funds are rebounding with wheat prices touching a four-week high as China increases imports to restrain rising prices.
The Teucrium Wheat Fund (NYSEArca: WEAT) was rising Thursday for the fourth straight session, while Teucrium Corn Fund (NYSEArca: CORN) and Teucrium Soybean Fund (NYSEArca: SOYB) have also gotten a lift this week.
Shi Wei, an analyst for Shanghai JC Intelligence Co., believes that China, the world’s largest consumer, could sell grain from its stockpiles and ask state-owned companies to increase imports, reports Jeff Wilson for Bloomberg.
“Record prices in China may increase demand” for U.S. wheat exports, Jason Britt, the president of Central States Commodities Inc., said in the article. “It looks like China may become more aggressive importing wheat.”
Wheat futures were up 1.9% Wednesday, trading around $670.5 per bushel. Soybean futures were 0.7% higher, trading around $1,321.8 per bushel. Corn gained 1.3%, trading at $454.8 per bushel.
Speculators have been pushing up prices on soft commodities, anticipating the U.S. Department of Agriculture will reveal lower Sept. 1 inventories. The government will update inventory levels on Sept. 30.