A decline in the value of the dollar and word that the European Union would import some US soft wheat added buoyancy to Chicago Board of Trade wheat futures on Thursday.
However, the market struggled and ended mixed in another day of volatile dealings as speculators jockeyed for position ahead of the release Monday of USDA's January crop reports. Those reports will include the government's first look at US seeded winter wheat acreage for harvest in 2004.
CBOT wheat closed 2 cents higher to 1-1/2 cents lower, with March down 1-1/2 at $3.94 per bushel.
Pit sources said commercial buying was noted on Thursday and there was talk that China might be seeking or may have bought new-crop US wheat.
Trade house FIMAT Futures was the key purchaser of 1,500 March, 500 May and 300 July, pit sources said.
Pit sources said wheat bulls found some fodder from the news around midday that the EU had granted import licenses for 77,577 tonnes of low and medium-quality soft wheat, with 47,440 tonnes to come from the US The move was a reminder of Europe's drought-hit supply this season.
Traders also took note of news early Thursday that Egypt's GASC bought 60,000 tonnes of US SRW wheat for shipment during the first half of February.
GASC paid $162/tonne FOB; it last bought US white wheat on December 24 for $146.69/tonne FOB.
Traders remain hopeful that business will be done with Tunisia, which tendered on Wednesday for nine cargoes of optional-origin soft wheat for February-May slots.
A Chinese wheat buying team will soon visit the United States, which kept hopes alive for more sales to that major buyer.
Wheat was hit in earlier dealings because USDA early Thursday said wheat export sales in the week ended January 1 were only 145,200 tonnes, below estimates for 250,000 to 450,000 tonnes.
The report included a sale of 105,000 tonnes to China announced earlier by USDA and a cancellation of 182,800 tonnes to unknown destinations. But Romania also booked 55,000 tonnes of US HRW wheat last week.
Technical support in the March contract at $3.93 per bushel was broken at the open, driving the contract to a session low of $3.90.
Resistance at $3.97-1/4 was penetrated, leaving a session high of $3.98 and buying waned at that level.
The nine-day relative strength index for March stood at 62 prior to the open on Thursday. Technical traders view an RSI of 70 or more as an overbought market and 30 or less as an oversold market.