Spring wheat futures at the Minneapolis Grain Exchange closed up the daily limit in a holiday-shortened session on Wednesday, bolstered by technical buying and spillover strength from the Chicago and Kansas City wheat markets, traders said.
Minneapolis December spring wheat ended up the 30-cent limit at $8.88 per bushels a one-month high. March was up 30 cents at $8.74-1/4. New-crop months set contract tops, with December 2008 closing up 13-1/2 cents at $7.43-1/4 after rising to $7.44-1/4.
The December/March spread traded at an inverse of 14-1/2 to 16 cents, with firm cash markets lifting December. Basis bids firmed for 14 and 15 percent protein spring wheat in the Minneapolis cash market. Volume was estimated by the exchange at 8,705 contracts, up from 8,138 on Tuesday. UBS Warburg was a noted buyer of 300-400 March, traders said.
The market closed at noon CST on Wednesday ahead of the US Thanksgiving holiday on Thursday. Trade resumes with the on Thursday night electronic session. On the export front, two Indian state-run trading firms may float wheat import tenders within the next three weeks, a government official in New Delhi said.
Also, rumours persisted that Pakistan would seek more wheat, possibly tendering for 200,000 tonnes next week, floor traders in Chicago said. CBOT December wheat closed up the 30-cent limit at $8.03-1/2. KCBT December was up 30 cents at $8.30-1/4.
Concerns about dry weather in the US Plains winter wheat belt added support. The region's hard red winter wheat crop needs moisture to boost growth ahead of winter dormancy, but storms late this week were forecast to produce only 0.1 to 0.25 inch of rain in far southern areas, offering little relief, DTN Meteorlogix said.
"It's looking more and more like we're not going to get any beneficial moisture to improve conditions in the western belt," said Mike Palmerino, DTN Meteorlogix forecaster. "The dryness is increasing."
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