Soft red winter wheat futures at the Chicago Board of Trade were mixed in choppy trade at midday Friday, with bull-spreading supporting nearby months, traders said. Prices stayed below the contract and 11-year highs established on Thursday.
The wheat market climbed to fresh contract highs in each of the previous four sessions, supported by tightening global supplies. As of 12:15 pm CDT (1715 GMT), CBOT July wheat was up 2 cents at $6.08-1/2 per bushel, with back months up 1-1/4 to down 8 cents.
Calyon Financial bought 200 September contracts while Bunge sold 300 September, traders said. Concerns about disruptions to the US hard red winter wheat harvest continued to underpin the market. Heavy rains moved through parts of the southern US Plains on Thursday, adding to delays in Oklahoma and Texas.
"Texas and Oklahoma are exceptionally wet. It's very poor in these areas - wet conditions, disease, quality, inability to harvest, lodging," DTN Meteorlogix forecaster Mike Palmerino said.
However, the market was also technically overbought after the strong rally this week. The nine-day relative strength index for the July contract stood at 88 ahead of Friday's open. Traders consider an RSI of 70 or higher as an overbought signal.
US wheat futures have surged since Monday, when the US Department of Agriculture projected that global wheat stocks would drop to 112.03 million tonnes by the end of 2007/08, the lowest level since 1977/78.
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