US wheat futures rallied on Friday, with the spot month Chicago Board of Trade contract closing at a 2-1/2 month high, on follow-through technical buying from strong gains earlier in the week, traders said. The Chicago Board of Trade March wheat futures contract rose 17 cents, a 2.9 percent gain, to close at $5.99-1/4 a bushel.
The CBOT May contract was 17 cents higher at $6.11-3/4 a bushel. Spot month had risen through $6 a bushel level during the trading session before setting back toward the close. Funds bought 3,000 CBOT contracts - traders Kansas City Board of Trade hard red winter wheat for March delivery ended up 16-1/4 cents at $6.16-1/4 a bushel. The May contract was 16-3/4 cents higher at $6.27-1/4 a bushel.
Minneapolis Grain Exchange spring wheat for March delivery settled 11-1/4 cents higher at $6.53 a bushel. The May contract was up 10-1/2 cents at $6.52-1/4 a bushel. US Agriculture Department said export sales of wheat were 253,600 tonnes (all for 2008/09) in the latest reporting week. Analysts expected export sales between 300,000 and 500,000 tonnes.
Wheat export sales were below 300,000 tonnes for the fourth straight week. Japan seeks 30,000 tonnes of feed wheat in a tender. Relative strength index for March contract closed Wednesday at 71, which is considered technically overbought.
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