US wheat futures rose on Thursday, led by a 1.8 percent gain in Minneapolis Grain Exchange spring wheat, as fears about total production overcame bearish factors such as abundant global supplies and poor exports, traders said. Gains in US stock markets and crude oil market as well as weakness in the US dollar also helped support wheat prices.
The Chicago Board of Trade July soft red winter wheat futures contract rose 4-1/2 cents to $5.93-1/4 a bushel. CBOT May, which expired on Thursday, closed up 2-3/4 cents at $5.81-1/2 a bushel. Funds bought 2,000 lots. MGE spring wheat for July delivery rose 12-1/2 cents to $7.25-3/4 a bushel. A slow start to planting spring wheat in major production states such as North Dakota was threatening harvest yields this fall.
Kansas City Board of Trade July hard red winter wheat settled up 5-3/4 cents at $6.43-3/4 per bushel. The US Agriculture Department on Thursday morning pegged export sales of US wheat last week at 234,100 tonnes (old-crop/new-crop), below estimates for 250,000 to 400,000 tonnes. Analyst cuts Ukraine's 2009 grain crop forecast.
Spanish farmers in a region that usually produces half the import-needy country's winter grain are expected to harvest 45 percent less wheat, official data shows. India to allow 2 million tonnes of wheat exports after election.
Egypt quarantined 52,501 tonnes of Russian wheat at the Red Sea port of Safaga for quality control reasons. Japan buys 86,000 tonnes of wheat at regular tender. Mostly favourable weather seen for southern US Plains HRW wheat crop, wet weather continues to slow US spring wheat seedings. Rainfall needed in Argentina to help recharge soil moisture for germination and early growth of wheat.
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