Soft red winter wheat futures at the Chicago Board of Trade ended higher on Tuesday on a technical bounce as buy-stops were hit, triggering a bout of fund-short covering, traders said.
The rally in CBOT soyabeans prices helped lift wheat, they said. CBOT wheat futures closed 3-1/4 to 5-1/2 cents per bushel higher, with December up 4-1/2 at $3.19-1/4.
Nearby soyabeans closed 11 to 13 cents per bushel higher amid a firm US cash market.
Funds bought about 3,500 CBOT wheat futures.
Rand Financial, Fiat Futures, Clayton, Cargill Investor Services each bought 400-600 December, traders said. There was little fresh fundamental news to stir the market turnaround, traders said.
US farmers were seeding their winter wheat crop at a fast clip and export business was routine. But demand for top-quality soft red winter wheat remained high at the US Gulf as exporters paid a premium for low vomitoxin SRW wheat.
The US Department of Agriculture reported late on Monday that 78 percent of the US winter wheat crop was planted as of Sunday, on par with the five-year average.
Good rains on Monday in the Midwest soft red winter wheat belt southern Illinois, southern Indiana and most of Ohio were seen adding sufficient moisture to help planting. The hard red winter wheat belt also has benefited from recent moisture.
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