(Bloomberg) -- Wheat reversed Thursday's advance, heading for the biggest weekly drop in almost three months, as traders weighed uncertainty over the omicron virus strain against signs of robust demand.
Futures are down 3.4% this week, after slumping on Monday and Tuesday on worries that the coronavirus variant could hurt economic growth. While the latest research shows the risk of reinfection with omicron is three times higher than for other strains, the hope is that vaccines will remain effective or can be adjusted to cope.
The wheat market is still being supported by concerns about severe floods in Australia, with more rain headed for already sodden harvest areas in eastern parts of the nation. There are also bullish signs on the demand side. This week, Egypt made its biggest tender purchase since at least 2012, Tunisia and Jordan booked wheat and Saudi Arabia is seeking supplies.
Wheat futures lost 0.4% to $8.1175 a bushel in Chicago, after climbing 3.1% on Thursday. Corn edged higher and soybeans rose 0.6%.
The weather in top soy grower Brazil has been nearly ideal and the country is heading for the world's largest crop of the oilseed ever. The market will look toward next week's monthly WASDE report from the U.S. government for the latest estimates on global supply and demand.
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