Wheat futures prices moved sharply higher Wednesday on beliefs that a government export subsidy program might be extended to the Soviet Union.
The December contract for wheat advanced 10 3/4 cents a bushel at the Chicago Board of Trade.
Prices shot up after a report that Sen. Robert Dole (R-Kan.), said the Reagan Administration is actively considering extending the export bonus program to the USSR. An Agriculture Department official said later that this is but one of several possible moves being considered.
Lagging agricultural exports have weighed heavily on prices.
Corn futures also benefited somewhat by the Dole report, said Victor Lespinasse, a trader with Dean Witter Reynolds Inc.
While corn is not covered by the export bonus program, it could be, he said. "This is an election year and whatever they do about the problem is bound to be friendly."
Soybean futures also moved sharply higher, but because of weather fears. "It was a typical weather rally for soybeans," said Walter Spilka, an analyst in New York with Smith Barney, Harris Upham & Co.