Soft red winter wheat futures at the Chicago Board of Trade gained early on Friday on a recovery from the steep price slide seen after Tuesday's rally, traders said.
Traders also said the market was finding support from news early Friday that Egypt bought 180,000 tonnes of wheat, with 120,000 tonnes coming from the United States.
At 10:14 am CDT (1514 GMT), CBOT wheat was up 2 to 3-1/2 cents per bushel, with July up 2 at $3.69-1/4. Pit sources said FIMAT Futures was the key buyer of 700 July. Refco Inc bought 200 July and sold 400 July.
Gains in wheat were limited by USDA's weekly export sales report issued on Friday. US wheat sales in the week ended May 27 totalled only 248,400 tonnes for old-crop and new-crop combined, vs. trade estimates for 300,000 to 400,000 tonnes.
USDA said 108,200 tonnes of HRW wheat were shipped to Iraq last week; that may be WFP business rather than the recent Cargill optional-origin sale. Technical support in the July contract was at $3.66-1/4 per bushel and resistance was at $3.91-1/2. The nine-day relative strength index for July stood at 42 prior to the open on Friday. Chartists view an RSI of 30 or less as an oversold market and 70 or more as an overbought market.
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