Hard red spring wheat futures on the Minneapolis Grain Exchange closed higher on Thursday, rebounding from declines as Chicago Board of Trade wheat rallied on short-covering, traders said. Traders were also positioning for Friday's USDA plantings and quarterly stock reports.
The average analyst estimate for US spring wheat seedlings was 13.588 million acres, down from 14.899 million in 2006. MGE May spring wheat closed up 3-3/4 cents at $5.02-3/4 per bushel, with July up 2-1/2 at $5.08-3/4 and new-crop December up 2-1/2 at $5.22-1/2.
The May/July spread traded at a carry of 6-1/2 to 7 cents. Firm cash markets helped support the May contract, although basis bids were flat in the Minneapolis rail market. "The mills are starting to sniff around for wheat," one Minneapolis trader said.
J.P. Morgan bought 200 December contracts and sold the same amount of Chicago wheat, traders said. Volume was estimated by the exchange at 6,980 contracts, up from 4,645 on Wednesday. At the CBOT, May wheat settled up 4-1/2 cents at $4.61. Wheat futures had support from bullish data in the USA's weekly export sales report. The government pegged US wheat sales at 636,500 tonnes (old and new crop), above trade estimates for 450,000 to 550,000 tonnes.
The Minneapolis market had light overhanging pressure from beneficial rains in the northern US Plains spring wheat belt, which should boost soil moisture ahead of the start of planting in April. The National Weather Service said heavy rains were forecast through on Friday in parts of the region, including 1 to 2 inches the Red River Valley.
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