Wheat futures on the Chicago Board of Trade closed higher Friday on bargain buying after this week's contract lows, coupled with talk that Russia has considered limiting grain exports, traders said. Russian officials denied export curbs were being considered as a means of balancing domestic supplies, but a spokeswoman for Russia's deputy prime minister confirmed a letter had been sent by the farm minister with options, rather than proposals, for monitoring the market situation.
Traders also monitoring a deal for a ceasefire between Ukraine and pro-Russian rebels, the first step towards ending fighting in eastern Ukraine that has raised fears of a slowdown in Black Sea grain exports. K.C. hard red winter and MGEX spring wheat closed higher, with K.C. posting the biggest gains on domestic demand for high-protein wheat following rain delays that have slowed the US spring wheat harvest.
Statistics Canada reported July 31 all-wheat stocks at 9.8 million tonnes, below an average of trade estimates for 10.7 million. Freezing temperatures in Western Canada next week will likely end the growing season for many crops which are still immature, said forecaster World Weather Inc. Gains capped by reminders of weak export demand. USDA reported weekly export sales of US wheat at 168,781 tonnes, well below trade estimates for 250,000 to 450,000 tonnes. CBOT reported 65 September wheat deliveries and 50 deliveries of K.C. hard red winter wheat, with the Term Commodities house account stopping 46. MGEX reported no spring wheat deliveries.
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