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Wheat futures on the Chicago Board of Trade closed mixed on Thursday, with nearby contracts gaining against back months on spreads amid firming cash markets, traders said. Cash values for soft red wheat have risen sharply at the US Gulf this week after rains hurt the quality of the early harvested crop in the Mid-South, making it tough to find No 2 grade wheat.
Bull-spreading also noted in K.C. hard red wheat, with nearbys gaining against back months due to rains delaying the hard red winter wheat harvest in the southern Plains. Back months in CBOT and KC wheat pressured by strong global export competition and the expanding harvest of wheat elsewhere in the Northern Hemisphere. The European Union is on track to harvest its biggest wheat crop in six years.
The International Grains Council raised its forecast for 2014/15 world wheat production to 699 million tonnes, up 5 million tonnes from its previous figure. Market awaiting Statistics Canada plantings data on Friday and US acreage and stocks figures on Monday. USDA reported export sales of US wheat in the latest week at 359,400 tonnes for 2014/15, in line with trade expectations.

Copyright Reuters, 2014

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