Chicago Board of Trade (CBOT) wheat futures traded lower most of the day on Thursday but closed firmer, lifted by technical buying and late-session short-covering, traders said. Futures were buoyed by spillover support from higher corn, which rose on worries about flood-delayed spring planting. CBOT May soft red winter wheat settled up 1-3/4 cents at $4.66-1/2 per bushel. The contract held chart support at its 20-day moving average.
K.C. May hard red winter wheat ended up 3 cents at $4.47 a bushel, while MGEX May spring wheat shed 1/4 cent to close at $5.71-1/4. Commodity funds hold a sizable net short position in CBOT wheat futures, leaving the market vulnerable to bouts of short-covering.
Heavy snow and the anticipation of floods in the northern Plains spring wheat belt, particularly in top producer North Dakota, have raised the risk of delays in planting the 2019 crop. Seeding normally begins in April.
The US Agriculture Department reported weekly wheat export sales of 437,300 tonnes, in line with forecasts that ranged from 300,000 to 675,000 tonnes.
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