Chicago Board of Trade wheat futures closed lower on Friday on end-of-the-week profit-taking after the market rallied to nearly four-month highs, traders said. The lower close came despite possible declines in global wheat output due to harsh weather in several wheat-producing countries, including Argentina, Australia, and the Black Sea region, traders said.
Frosty weather in south-east Australia overnight on Thursday helped underpin wheat futures, but it will take some time to assess the crop damage, said Sterling Smith, futures specialist for Citigroup. Wheat exports from the Black Sea region could be modest in November as Russian farmers withhold crop in expectation of higher prices and as Kazakhstan needs more time to get a clear estimate of the quality of its harvest, traders said.
Commodity Weather Group on Friday said the US Plains hard red winter wheat region would receive crop-friendly showers over the next two weeks, which will aid early growth. However, the south-west 15 percent of the belt is unfavourably dry and may not receive any showers. Cash basis bids for hard red winter wheat held steady on Friday across the southern US Plains, dealers said. Protein premiums for railcar wheat to and through Kansas City were unchanged.
European wheat futures held close to a 4-1/2 month high on Friday, supported by bullish export sentiment. Key resistance for the December contract is at its 200-day moving average of $7.11-1/2 per bushel, and support is at the 100-day moving average at $6.74-3/4. The nine-day relative strength index is at 51.
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