Chicago Board of Trade wheat futures closed higher Tuesday for a third straight session as fund short-covering and signs of commercial interest helped offset pressure from a stronger dollar, traders said. K.C. hard red winter and MGEX spring wheat also closed higher, rebounding from recent contract lows.
Additional support from dry conditions in parts of the US Plains as winter wheat crops start to emerge from dormancy. However, weekly crop condition ratings improved in Kansas and Texas, according to USDA state reports released late Monday. USDA's monthly supply/demand report offered no significant bearish news. The USDA trimmed its US 2014/15 wheat ending stocks forecast to 691 million bushels, down from 692 million last month and below an average of trade estimates.
The USDA pared its 2014/15 global wheat ending stocks forecast to 197.71 million tonnes, from 197.85 million tonnes in February, but still a four-year high. The number of K.C. wheat contracts registered for delivery fell by 70 lots late Monday, a possible sign of commercial demand. CBOT reported no March deliveries of soft red winter or K.C. hard red winter wheat. MGEX reported no spring wheat deliveries.
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