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Wheat gains for fourth day as traders reverse bets

Published on NewsOK Modified: February 4, 2014 at 3:40 pm •  Published: February 4, 2014

Wheat rose the most in ten months as more cold weather is forecast for the Midwest.

The price of wheat for March delivery rose 20.75 cents, or 3.7 percent, to $5.845 a bushel, its biggest one-day jump since April last year.

Wheat prices are rebounding from low levels. The grain settled at $5.51 a bushel Jan. 29, their lowest price in 3 ½ years.

While it is unlikely that the colder weather will significantly damage this year's crop, it did prompt traders to reverse bets on further declines. Traders started buying wheat contracts to cover what they feared could become losing bets, said Todd Hultman, a grains analyst at DTN.

"Wheat prices have fallen sharply for three months and have gotten to very cheap levels," and traders were nervous about betting against more declines, he said.

In other trading of agricultural futures, corn and soybeans rose.

March corn rose 6 cents, or 1.4 percent, to $4.418 a bushel. Soybeans for the same month climbed 20.5 cents, or 1.6 percent, to $13.133.

In energy trading, the forecasts for further cold across much of the U.S. sent natural gas for March delivery soaring.

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