US wheat futures higher

US wheat futures closed higher on Monday in a recovery bounce after Friday's 8 percent plunge in Chicago and Kansas City, traders said. Traders said the rally was technical in nature. Prices came off the day's highs toward the close on commission house selling, traders said.
"We're trying to figure out what fair value is," one Kansas City trader said of the volatile market. Wheat futures tumbled last week as part of a broad sell-off in commodities as investment funds squeezed for credit liquidated holdings. Grain markets bounced back on Monday.
"There is bargain hunting. And no one wants to be short ahead of next week's report," the trader said, referring to the US Department of Agriculture's March 31 planting intentions and quarterly grain stocks reports.
At the Chicago Board of Trade, May soft red winter wheat settled up 32-1/2 cents, or 3 percent, at $10.20 per bushel - well off its session high of $10.62-1/4. Back months ended up 20 to 55 cents. Funds bought 2,000 to 4,000 CBOT wheat contracts, traders said. At the Kansas City Board of Trade, May hard red winter wheat ended up 36-1/2 cents at $10.68-1/2 a bushel, with new-crop July up 51 cents at $10.68.
At the Minneapolis Grain Exchange, May spring wheat closed up 42-1/4 cents at $13.19-1/4 per bushel. The market had background support from concerns about dryness in western areas of the southern US Plains wheat belt. The dry areas were expected to expand this week in western Texas, south-western Kansas and the Oklahoma Panhandle, with little or no moisture in the forecast.
But eastern areas are in good shape, benefiting from more moisture over the winter. Weekly export inspections data was market-neutral. The US Department of Agriculture reported export inspections of US wheat for the last week at 18.109 million bushels, within a range of trade estimates for 16 million to 23 million.
Export business featured news that Turkey will tender March 26 for 250,000 tonnes of US wheat. However, on a bearish note, India has no immediate plans to import wheat as it hopes to harvest a good crop later this month, the country's farm minister said. Egyptian farmers planted 3.2 million acres (1.3 million hectares) of wheat for the upcoming season, the largest amount in 10 years, Agriculture Minister Amin Abaza said.
Russian domestic wheat prices powered to record highs last week, despite the government's success in halting exports with a 40 percent tariff. The supplement to Friday's CFTC report showed large speculators cut their net long position in CBOT wheat down to 378 contracts in the week ended March 18, from 1,276 the previous week.
Daily trading volume for CBOT wheat futures was light at an estimated 61,842 contracts, down from 114,909 on Thursday. At the KCBT, volume was estimated at 11,864 contracts. Volume in Minneapolis was especially thin at an estimated 3,795 contracts.