US wheat futures closed higher on Tuesday on follow-through technical buying and short covering after Monday's firm close. CBOT May soft red winter wheat up 8-1/4 cents at $4.76 per bushel. The wheat market was oversold and due for a bounce, traders said. Funds bought 4,000 to 5,000 contracts. Active spreading of 40,000 May/July.
Funds hold a massive net short position in CBOT wheat, leaving the market vulnerable to periodic bouts of short-covering. Kansas City Board of Trade May hard red winter wheat up 8-1/2 cents at $4.92-3/4 a bushel, Minneapolis Grain Exchange May spring wheat up 5-1/2 cents at $5.07-3/4 a bushel. USDA said US winter wheat crop rated 12 percent excellent compared with 13 percent the week before, and 53 percent good compared with 52 percent the prior week. CBOT May broke resistance at 20-day moving average of $4.72.
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