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Hard red winter wheat futures on the Kansas City Board of Trade ended more than 4 percent higher on Tuesday as fund buying and stronger outside markets lifted wheat prices. The benchmark March ended up 27-3/4 cents, or 4.3 percent, at $6.70 per bushel, with May up 27-1/2 cents, or 4.2 percent, at $6.81.
Strength in Chicago Board of Trade wheat and soybeans helped pull KCBT wheat higher. Fund buying was a factor as part of new-year rebalancing of portfolios, some traders said. In export news, a Saudi Arabian state buyer issued a tender to buy 495,000 tonnes of hard milling wheat for arrival in February through May. Origin was optional and bids were due January 9. Japan was seeking to buy 127,000 tonnes of food wheat from the United States and Canada through an ordinary tender closing on Thursday.

Copyright Reuters, 2009

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