Chicago Board of Trade wheat futures closed higher Thursday on bargain buying after the spot contract fell to its lowest since October, traders said. Export data lent support. USDA reported weekly export sales of US wheat at 328,300 tonnes for 2014/15 and 130,700 for 2015/16, topping trade expectations for combined-year sales of 200,000 to 400,000 tonnes.
Weekly sales of soft red winter wheat, the type traded in Chicago, totalled 110,251 tonnes for 2014/15, the second-most since August. The figure contrasted with sales of hard red winter wheat, which fell to the lowest in seven weeks, and hard red spring wheat, the least since August. K.C. hard red winter wheat and MGEX spring wheat futures closed mixed after falling to contract lows in most months.
Gains capped by plentiful world supplies and a stronger dollar, which makes US wheat less attractive on the global market. The International Grains Council raised its forecast for the 2014/15 world wheat crop by 2 million tonnes to 719 million tonnes, but projected the 2015/16 harvest would fall to 705 million tonnes. Beneficial snowfall is forecast in the US Plains and Midwest through the middle of next week which should help recharge soil moisture for winter wheat.
Comments
Comments are closed.