Wheat futures on the Chicago Board of Trade closed modestly higher early on Wednesday following a choppy session, supported by technical buying following a recent slide to a four-year low, traders said. Funds hold a large net short position in CBOT wheat, leaving the market open to short-covering. K.C. hard red winter wheat and MGEX spring wheat settled lower, losing against CBOT wheat on spreads.
Traders adjusting positions ahead of USDA's October 10 supply/demand report, in which the government is expected to raise its forecast of US 2014/15 wheat and corn ending stocks. Russian ag consultancy IKAR cut its forecast for the country's 2014 wheat crop to 58.5 million tonnes from 60 million tonnes previously.
Farm office FranceAgriMer raised its forecast for French soft wheat stocks at the end of the current 2014/2015 marketing season to 4.4 million tonnes, its highest level in 10 years, up from 3.9 million last month. Rains expected in the southern US Plains this week will stall fieldwork but boost soil moisture in eastern Colorado, Kansas and Oklahoma, MDA Weather Services said. Analysts expect USDA's weekly export sales report on Thursday to show US wheat sales in the latest week at 400,000 to 600,000 tonnes.
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