CBOT wheat futures sharply higher

Wheat futures at the Chicago Board of Trade closed sharply higher on Monday, following as the Minneapolis spring wheat market soared on spring wheat weather worries, traders said.
Concerns that hot and dry weather could hurt prospects for the developing spring wheat crop prompted short covering. CBOT July wheat closed 12-3/4 cents higher at $3.84-1/4 per bushel, with September up 6 at $4.02 and December up 6-1/2 at $4.21.
Funds bought 3,000 contracts, traders said. Volume was on the light side, estimated by the exchange at 37,401 futures and 5,226 options.
The condition of the US spring wheat crop has drawn close attention in recent weeks because drought reduced the hard red winter wheat harvest, tightening US stocks.
After the markets closed, the USDA said 52 percent of the spring wheat crop was rated in good to excellent condition, down 5 points from the previous week's rating of 57 percent.
In Minneapolis, MGE September spring wheat futures settled 14 cents higher at $5.07 per bushel after posting a contract high at $5.12.
The USDA reported the US winter wheat harvest at 65 percent complete, above the five-year average of 55 percent, but lagging trade expectations of about 70 percent.
CBOT traders noted some short covering ahead of the US Independence Day holiday on Tuesday, when all US markets will be closed. CBOT agricultural markets closed at their normal times on Monday. The CFTC's Commitments of Traders report on Friday showed that large speculators shifted to a small net long position in CBOT wheat futures for the week ended June 27, while reducing their net long in combined futures and options.
There were heavy deliveries against CBOT July, totalling 972 lots. But there was strong stopping, likely from commercials, with customers of Dowd Wescott Group, ABN Amro and Tenco each taking 215 to 350 lots.
Weekly US export inspections data was delayed. The US Department of Agriculture said it would release its weekly grain inspections report on Wednesday instead of Monday due to technical difficulties.