Chicago Board of Trade wheat futures closed higher on Friday on a technical rebound and spillover strength from a jump in CBOT soybeans, traders said. CBOT May wheat settled 4-1/2 cents higher at $3.09-1/2 per bushel, with July up 3-1/4 at $3.17 and deferred months up 3 to 4 cents. Funds bought 1,500 contracts, traders said. Estimated volume was light 17,414 futures. Options trade was pegged at 8,596 contracts. Bullish technical signals included the nine-day relative strength index for July wheat, which stood at 33 after Thursday's session. Chartists consider an RSI of 30 or lower as one sign of an oversold market. The RSI moved to 40 by Friday's close.
Leading into Friday, the July contract had closed lower for seven straight sessions.
Wheat futures opened lower but local buying early in the session lifted values, triggering buy-stops in July at around $3.13, traders said.
On the fundamental side, concerns about drought and the Australian wheat crop added some support.
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