Hard red winter wheat futures on the Kansas City Board of Trade ended higher on Monday, supported by a weaker dollar and better-than-expected weekly wheat export inspections. The March contract ended up 8-1/2 cents at $5.95 a bushel, after rallying to $6.04, and May ended up 8-1/2 cents at $6.06, after climbing as high as $6.15.
Broad declines in the US dollar offered support, making US commodities cheaper for buyers holding foreign currencies. Early strength in Chicago Board of Trade soyabeans helped provide strength, but profit-taking eroded gains. Also offering support to wheat prices, the US Department of Agriculture on Monday said 19.048 million bushels of wheat were inspected for export last week, above forecasts for 13 million to 15 million bushels.
Beneficial rain the US Plains winter wheat belt was a limiting factor, though more rain was needed. Rains were also noted in China's drought-hit wheat belt. The market was awaiting the USDA's February supply/demand and world crop production reports Tuesday morning. Traders were expecting only minor adjustments to US wheat ending stocks. Iraq bought 350,000 tonnes of hard wheat in a tender that closed on Sunday, the second purchase in 2009.
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