Chicago Board of Trade wheat futures settled higher on Thursday, climbing back from a two-week low in the March contract on short-covering and a rally in soybean futures, traders said. K.C. hard red winter wheat futures closed mixed while MGEX spring wheat firmed. MGEX July set a contract low before turning higher.
CBOT wheat followed early declines in soybeans and corn after the new government of Argentina took steps to devalue its currency, a move that may spur Argentine farmer sales of grain and soy in the coming weeks and months. Strength in the US dollar added pressure, making US grains less attractive on the world market. The dollar hit a two-week high, a day after the Federal Reserve hiked interest rates.
But wheat rallied along with soybeans and corn on short-covering after weather forecasts for Brazil's soy belt turned drier. USDA reported export sales of US 2015/16 wheat in the latest week at 320,200 tonnes, in line with trade estimates for 250,000 to 450,000 tonnes. French consultancy Strategie Grains raised its forecast for 2015/16 EU soft wheat exports to 27.6 million tonnes, up 800,000 tonnes from last month but still lower than the 32.5 million exported last season.
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