Wheat futures on the Chicago Board of Trade closed higher on Monday on technical buying and fund short-covering, along with worries about dry weather in the US Plains that buoyed the K.C. wheat market, traders said. Dry conditions are forecast to persist in the southern US Plains, raising concern about the developing hard red winter wheat crop, while temperatures are expected to drop below freezing late this week.
CBOT May wheat settled up 3 cents at $4.78-3/4 per bushel after reaching $4.79-1/2, the highest level since February 4.
The CBOT March contract expired quietly at $4.71-1/2 per bushel.
K.C. hard red winter wheat futures and MGEX spring wheat futures also closed higher, with both markets posting larger advances than CBOT wheat.
USDA said private exporters changed the destination on 100,000 tonnes of US hard red spring wheat sold for 2015/16 delivery to China. The wheat was previously designated as sold to unknown destinations.
Hail and rain damaged ripening wheat, chickpea and rapeseed in India's key farm belts, potentially cutting output.
Friday's weekly Commitments of Traders report showed non-commercial traders reduced their net short position in CBOT wheat to 137,566 contracts in the week to March 8.
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