Wheat futures on the Chicago Board of Trade were higher at midmorning on Tuesday on technical buying by speculators, but volume was thin, traders said. "There is not that much going on. It's nothing but the funds and the specs buying," one CBOT trader said.
Wheat drew added support from strength in corn futures ahead of President George W. Bush's State of the Union address on Tuesday night, which was expected to promote the use of corn-based ethanol.
As of 11:10 am CST (1710 GMT), March wheat was up 8-1/2 cents, or 1.8 percent, at $4.73-1/2 per bushel, with new-crop July up 7-1/2 at $4.94-1/2 and December up 8 at $5.13. Inter-market spreads added support, with UBS Warburg spreading 400 December wheat/corn, traders said. Rosenthal Collins was an outright buyer of 100 March wheat contracts.
The CBOT March contract stayed rangebound between key support at its 200-day moving average of $4.56 and resistance at the 100-day MA of $4.85. The nine-day relative strength index was in neutral territory at 43 ahead of the open.
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