US wheat futures closed higher on Friday in a technical bounce after steep declines this week, following similar rallies in corn, soyabeans and crude oil, traders said. Chicago Board of Trade wheat rallied in thin trade, after the spot contract fell to a 16-month low Thursday on fears of recession slowing global demand for grains.
Traders were encouraged by an upturn in US equity markets. The Dow Jones industrial average was up about 184 points at the CBOT close, although the index later retreated and closed down 127.04 points. At the CBOT, December soft red winter wheat settled up 11 cents, nearly 2 percent, at $5.66-1/4 per bushel. March was up 11-1/4 cents at $5.86-1/2.
Commodity funds bought 2,000 CBOT wheat contracts, traders said. At the Kansas City Board of Trade, December hard red winter wheat rose 9-1/2 cents, 1.62 percent, to end at $5.97-1/2 a bushel; March up 10-3/4 at $6.14-1/2. At the Minneapolis Grain Exchange, December spring wheat closed up 8 cents, 1.27 percent, at $6.40-1/4 a bushel; March up 8 cents at $6.43-1/2.
CBOT wheat volume was light at an estimated 34,477 futures and 10,477 options. KCBT wheat volume estimated at 8,560 futures; MGE estimated at 3,956 futures. USDA reported export sales of US wheat in the latest week at 435,600 tonnes, below a range of trade estimates for 450,000 to 550,000 tonnes.
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