Chicago Board of Trade wheat futures closed higher on Friday on technical buying including short-covering, with nearby contracts gaining against back months on spreads, traders said. The CBOT September contract led the way up, settling 12-3/4 cents higher at $4.16 per bushel. K.C. hard red winter wheat and MGEX spring wheat futures also closed higher but trailed the advances in Chicago.
Nearby CBOT September wheat drew support after the CME reported that the number of CBOT wheat contracts registered for delivery fell by 356 lots from the previous day, leaving 739 contracts registered. Also, Friday was the first day of the five-session period during which commodity index funds roll their short September positions forward by buying September wheat and selling back months.
France's farm ministry cut its yield estimate for this year's soft wheat harvest to a 30-year low, confirming market concerns that adverse spring weather has ravaged crops in the European Union's biggest grain grower. South Korea has not detected any genetically modified wheat in tests on imports of wheat and flour from Washington state, after the discovery of unapproved GM wheat in the US state prompted Japan and South Korea to suspend certain US imports. For the week, CBOT September wheat rise 8-1/4 cents per bushel or 2 percent. K.C. September wheat rose 2 cents or 0.5 percent for the week and MGEX September spring what rose 6-3/4 cents or 1.4 percent.
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