Wheat futures at the Chicago Board of Trade closed up sharply on Wednesday on spill-over support from the bullish numbers for wheat in Tuesday's USDA supply/demand reports and on hopes for additional sales of US wheat to China, traders said.
CBOT wheat closed 1 to 4 cents per bushel higher, with March up 4 at $3.88-1/2.
Volume was light, estimated at 18,754 futures and 4,061 options.
Traders said wheat futures continued to find support from the release by USDA early Tuesday of US and global wheat ending stocks for 2003-04 that were below trade expectations and down from the USDA's forecast in January.
Pit sources also said wheat bulls were banking on more sales of US wheat to China when Chinese wheat buyers visit next week.
However, concerns remain about the large amount of wheat that China already has bought that remains unshipped.
Exports overnight were routine, with South Korea buying 20,000 tonnes of US wheat. And the weakness of the dollar remains supportive for the wheat market as it makes US wheat more competitive in the world export scene.
Dry weather in parts of the US winter wheat growing region, especially in western Kansas, eastern Colorado and western Nebraska, is also a concern.
Recent snowfall in the region added precipitation but more is needed to ensure a healthy start for the crop when it breaks from dormancy this spring.
Moisture is needed soon in parts of the western US Plains hard red winter wheat region as the crop is nearing a critical stage of development, a private forecaster said on Wednesday.
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