Hard red spring wheat futures on the Minneapolis Grain Exchange closed higher on Tuesday in a light bounce from Monday's fall to two-month lows, but volume was thin, traders said. May spring wheat settled up 3-1/2 cents at $5.01-1/2 per bushel, meeting resistance just above its 200-day moving average of $5.02-1/4.
July closed up 3-1/2 cents at $5.10-1/2 and new-crop December was up 4-1/2 at $5.23-1/2. Funds were even, traders said. Volume was estimated by the exchange at 4,965 contracts, compared with 4,680 lots on Monday. A short-covering rally in Chicago Board of Trade wheat set the tone, with CBOT May wheat settling up 7-3/4 cents at $4.62-3/4.
News that Egypt bought 144,000 tonnes of wheat, including 60,000 tonnes of US soft red winter, was viewed as bullish. But the market's advance was limited by ideal crop weather in the southern US Plains, which should promote the growth of hard red winter wheat, the largest US wheat class.
State crop reports late on Monday by the United States Department of Agriculture (USDA) underscored the favourable conditions. In Kansas, the top US wheat state, 70 percent of the crop was rated in good to excellent condition, up from 60 percent the previous week. Wheat ratings also improved in Oklahoma and Texas.
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