Wheat futures on the Chicago Board of Trade closed higher on Thursday, rebounding off of this week's four-month low and gaining against K.C. hard red winter and MGEX spring wheat on inter-market spreads, traders said. The premium for spot K.C. wheat over spot CBOT wheat closed on Wednesday above $1.40 a bushel, the most in three years, and was due for a correction.
Bull-spreading noted in MGEX and K.C. wheat, with nearby contracts gaining against backs. The cash spring wheat basis has firmed due to slowing farmer sales at a time when millers and exporters appear to lack coverage, traders said.
Spot K.C. July wheat lifted by disappointing early harvest yield reports and rumours of US wheat sales to Brazil, now that the South American country plans to eliminate an import tariff for up to 1 million tonnes of non-Mercosur wheat. USDA reported export sales of US wheat in the latest week at 372,600 tonnes for 2014/15, toward the low end of trade estimates, and 8,200 tonnes for 2015/16.
Trade eyeing $5.90 and $6.00 strikes ahead of last trading day on Friday for CBOT July options.
French analyst Strategie Grains raised its forecast of this year's European Union soft wheat harvest by 2 million tonnes, to 139.4 million, as good growing conditions boosted yield prospects.
Comments
Comments are closed.