The Chicago Board of Trade (CBOT) rose for eight sessions in a row on its March 12 contract, posting close to an 8.5pc increase on the lows just before Christmas.

The March 12 contract is currently sitting at US652 cents a bushel, a rise equivalent to $A15-20/t.

And the news is better for the many Australian growers with unsold lower grade milling wheat, with price rises right across the wheat complex.

The major physical issue bringing prices up has been dryness in South America at a crucial part in the corn growing season there.

Dry conditions in South America are linked to the current La Nina event in the Pacific Ocean.

AgFarm regional manager Sam Heagney said the problems in the corn sector, which already has a tight balance sheet, would provide a drag for lower grade milling wheat.

There is also support from the fund managers, whose investment is so crucial in determining futures prices.

John Williams, executive director of the Australian Commodity Research Institute, said the funds were bullish on the majority of agricultural commodities.

“There has been less interest in Chicago soft wheat, ethanol and soybeans, but there is a more bullish feeling even for these commodities amongst the fund managers,” Dr Williams said.

He said he believed the best marketing opportunities this year would come around February, before northern hemisphere crop condition becomes more certain.

Mr Heagney said few farmers had acted on the slight price gain as yet.

“The rise is a positive as it is a change in the market, but realistically, a $10/t rise, at a traditionally quiet time of the year, is unlikely to be enough to trigger many sales.”

He said Australian farmers had largely shut up shop during December in reaction to falling prices.

“There was a reduction in physical sales by farmers in response to the price drop.”