US wheat futures rose on Friday as traders covered shorts after prices fell to their lowest level since mid-December earlier in the week. Rising crude oil prices and a drop in the dollar, which makes US supplies more attractive to overseas buyers, also supported the rally in wheat prices. The wheat market gained strength from a sharp rise in soyabean futures.
At the Chicago Board of Trade, the March soft red winter wheat futures contract rose 12-1/4 cents to close at $5.16-1/4 a bushel, a 2.4 percent gain. CBOT May wheat gained 12 cents to $5.27 a bushel. Deliveries on the March contract were 1,389 lots amid scattered stopping. CBOT registrations late Thursday were at 7,125 lots, down from 7,164 lots the previous day.
Kansas City Board of Trade hard red winter wheat for March delivery rose 13 cents to $5.68 a bushel, a 2.3 percent gain. The KCBT May contract ended up 14 cents, or 2.5 percent, at $5.74 a bushel. There were eight redeliveries posted against the expiring March contract. ADM Investor Services remained the sole stopper.
Minneapolis Grain Exchange spring wheat for March delivery rose 11 cents to $6.31 a bushel CBOT wheat volume estimated at 48,502 futures and 23,388 options. In Kansas City, an estimated 9,291 futures traded. Minneapolis volume was seen at 2,470 futures.
Paris milling wheat was up 1.25 to 2.25 euros per tonne. Rain needed in US Plains HRW wheat region, especially in west and central Kansas, Oklahoma and Texas. Some chance of rain in the north Texas region about next Wednesday. India eyes wheat exports, exporters await subsidies. FAPRI projects 2009 US wheat crop; use.
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