Wheat prices jumped 3.5% in Chicago after a clean sweep in an Egyptian tender - a second notable export victory within a day – spurred talk of America's growing grip on shipments.

Wheat for September added 23 cents to $6.75 ½ a bushel, with the December lot making similar headway to $7.08 ¾ a bushel.

The rises followed the award by Egypt, the world's top wheat importer, of all 225,000 tonnes of its latest tender to the US.

The tender, for hard red wheat, excluded France, Egypt's main wheat source since the shut down on shipments from the drought-hit former Soviet Union. France is a soft wheat supplier.

However, while wheat from Australia, Canada and Germany was also invited for the tender, no offers from these countries were submitted.

US holds the cards

The absence of Australia from the tender sheet was not viewed as wholly surprising, given the distance and costs involved in shipping its grain to Egypt.

"A fair chunk of Australia wheat exports are already spoken for," a London analyst added.

However, the analyst viewed the lack of offers of Canadian wheat was viewed as surprising, even though the country's export potential has been dimmed by a rain-hampered crop. Canadian farm ministry data out late on Tuesday forecast exports of non-durum wheat falling 12.2% to 13.0m tonnes.

"The result bears out… that the US is going to be the residual world wheat supplier," the analyst added.

"Anyone who really wants wheat of that sort of specification pretty much has to go to the US."

America has enjoyed a bumper wheat crop this year, unlike rain-sodden Canada and the drought-struck former Soviet Union, while the European Union has suffered both excessive dryness and precipitation.

'Harvest damage underscored' 

Benson Quinn Commodities noted that even the EU, normally a big wheat exporter, may be forced to go to the US for higher quality wheat, after an unnamed German miller was revealed late on Tuesday to have bought 20,000 tonnes of high protein wheat from America.

The order was America's first order of non-durum wheat from Germany in three years, and the biggest for nearly a decade.

"While the sale amount isn't large it does underscore the damage harvest delaying rains have done to the northern European Union wheat crop," Benson Quinn Commodities said.

"EU millers will be forced to buy North American spring wheat to blend with the low quality EU wheat this year."

Sell-off 'harsh'

The broker added that Egypt's purchase, with Tunisia also in the market, and Iraq trailing tenders from next month, was also viewed as a sign that price drops, as Chicago suffered on Tuesday, were luring out buyers.

"End users that have been use to going hand to mouth with abundant Black Sea wheat supplies will be looking to secure coverage on dips now that that avenue has been closed," Benson Quinn said.

Furthermore, wheat's late slump in the last session had been viewed as "particularly harsh", and was inspired by unnatural pressure from end-of-the-month fund selling.