Wheat futures on the Chicago Board of Trade closed mostly higher on Friday, following strength in European wheat markets amid global supply concerns, traders said. In Paris, milling wheat futures rose on harvest delays due to more rain in northern France, and soaring domestic cash markets.
Also bullish was news that the Canadian Wheat Board lowered its all-wheat production estimate for Western Canada. The CWB on Thursday pegged the 2007 crop at 20.0 million tonnes, down from 21.2 million in June and down 16 percent from last year.
These latest supply worries underscored projections for tight world wheat stocks for the 2007/08 marketing year. "The demand and the availability are still what's driving the market. It's enough to feed the bull," one cash-connected trader said.
CBoT September wheat settled 8-1/4 cents higher at $6.50 per bushel, with December up 5-1/2 at $6.69 and back months up 7-1/2 to down 3 cents. Funds bought 2,000 contracts, traders said. Volume was on the light side, estimated by the CBoT at 45,253 wheat futures and 6,117 options.
The September contract ended the week down 3-1/4 cents, plummeting at midweek on profit-taking, and then bouncing back on strong US export demand and the return of harvest-stalling rains in France.
US wheat remains very competitive on the world market. The USDA has reported export sales of almost 4 million tonnes over the last two weeks. However, new-crop months for 2008 delivery remained under pressure, reflecting expectations of an expansion in winter wheat plantings throughout the Northern Hemisphere this fall.
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