Wheat prices rose on Friday after news that Egypt will buy a large amount to secure its future needs, a day after a Ukrainian government statement explaining a ship carrying grains to Egypt was hit by Russian missiles.

Otherwise, three sources told Reuters the Egyptian government bought Russian wheat in a special deal this week outside the normal tender process. 

Two sources said Egypt bought 430 thousand tonnes of Russian wheat, to be shipped in October. 

Egyptian officials refused to comment but told Reuters they receive offers and assess them on a daily basis. 

The sources said the shipments were bought for $233 a tonne from a mediator who bought the grains directly from Russian for $231 a tonne.

Egypt, the world’s largest wheat importer, is trying to benefit from the lower global prices to accumulate and secure more grains, used in subsidized bread for tens of million of Egyptians. 

Reuters reported last month that Egyptian President Abd El-Fattah El-Sisy personally ordered the biggest grain tender ever made for the country, hoping to secure half the country’s needs in one go, but they barely filled 7% of the target due to higher prices.

Egypt is suffering from steep inflation, and was bailed out by the IMF more than once in recent years.

Corn

Corn futures due in December rose 1.9% at the close to $4.13  bushel.

Soybeans 

Soybean futures due in November fell 0.4% today to $10.06 a bushel.

Wheat

Wheat futures due in December rose 2.9% to $5.94 a bushel.

Most cryptocurrencies rose on Friday as risk appetite rebounded amid speculation the Federal Reserve will cut rates by a faster than expected pace.

The Michigan University's consumer confidence index rose 1.6% m/m in September to 69 points, beating estimates of 68.3. 

Earlier data showed producer prices rose 1.7% in August, below July’s 2.1% reading, but core prices accelerated to 3.3%.

Other data showed US consumer prices rose 2.5% y/y in August, the lowest rate since February 2021, and below estimates of 2.6%.

Core prices rose 3.2% y/y last month, and 0.3% m/m, up from 0.2% in July. 

According to the Fedwatch tool, the odds of a 0.5% Fed rate cut in September rose from 28% to 49%, while the odds of a 0.25% Fed rate cut fell to 51%. 

Markets eagerly await the Fed’s next week policy meeting, scheduled on September 17 and 18, and is expected to signal the start of the new policy easing cycle. 

Ethereum 

On trading, ethereum rose 2.7% on Coinmarketcap as of 20:57 GMT to $2416, marking a total weekly profit of 8.9%.

Oil prices fell on Friday and relinquished earlier gains, but prices still marked weekly profits overall.

Baker Hughes data showed the US oil rig count rose by 5 to 488 rigs, while natural gas rigs rose by 3 to 97 rigs.

Oil prices were impacted by the resumption of production and refining in the Gulf coastal regions as storm activities cooled down. 

On trading, Brent November futures fell 0.5%, or 36 cents to $71.61 a barrel, but marked a weekly profit of 0.75%.

US crude futures due in October fell 0.45%, or 32 cents today to $68.65 a barrel, with a weekly profit of 1.45%.

US stock indices rose on Friday amid increasing optimism about upcoming Federal Reserve rate cuts following the latest inflation data, which showed prices continued to slow down.

According to the Fedwatch tool, the odds of a 0.5% Fed rate cut in September rose from 28% to 49%, while the odds of a 0.25% Fed rate cut fell to 51%. 

Markets eagerly await the Fed’s next week policy meeting, scheduled on September 17 and 18, and is expected to signal the start of the new policy easing cycle. 

On trading, Dow Jones rose 0.7% as of 16:03 GMT to 41,376, while S&P 500 rose 0.5% to 5625, as NASDAQ added 0.6% to 17,681.