Spring wheat futures at the Minneapolis Grain Exchange closed higher on Tuesday, following the Chicago and Kansas City wheat markets amid global wheat supply worries, traders said.
An improvement in United States spring wheat crop ratings kept Minneapolis trailing the advances in other wheat markets. Still, contract highs were hit in all months except spot July. July spring wheat ended 3-1/2 cents higher at $5.36-3/4 per bushel after reaching $5.45, short of its contract high of $5.45-3/4. September closed up 3-1/4 cents at $5.41-1/2 after reaching a new high at $5.50, and December ended up 3 at $5.54 after pushing its high to $5.61.
Volume was estimated by the Minneapolis exchange at 5,697 contracts, up from 3,520 lots on Monday. At the CBOT, July wheat rose 7 cents to close at $5.27-1/4 after reaching a contract high at $5.36. KCBT July wheat ended up 5-3/4 cents at $5.10-1/2. Continued concerns about drought limiting wheat production in the Black Sea region lifted French wheat futures to contract highs.
Signs that United States winter what crop was deteriorating were bullish. The US Department of Agriculture late on Monday said 53 percent of the crop was rated in good to excellent condition, down from 57 percent the previous week. But the US spring wheat crop is off to a strong start. USDA said spring wheat was rated 85 percent good to excellent, up from 79 percent a week ago.
Traders shrugged off a bearish US production estimate from Memphis-based consulting firm Informal Economics. Inform pegged the US 2007 winter wheat crop at 1.686 billion bushels, trade sources said, above USA's latest estimate of 1.62 billion. USDA will update its US winter wheat estimates on June 11.
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