Spring wheat futures at the Minneapolis Grain Exchange settled higher on Friday, rallying from two-month lows late in the session as the Kansas City market surged, traders said. Traders noted talk of fresh export demand, including rumours that Brazil might be seeking US hard red winter wheat.
But the market was also due for a technical correction following steep declines this week. MGE September spring wheat closed 1-3/4 cents higher at $4.48-1/2 per bushel after trading in a wide range, from $4.37-1/2 to $4.49.
Most-active December settled up 2-1/2 cents at $4.59. Volume was estimated by the exchange at 7,025 contracts, up from 5,925 on Thursday. Local selling and speculative long liquidation weighed on prices, triggering sell-stops, although trade was thin.
Pressure also stemmed from disappointment over the amount of wheat that Egypt bought this week. Egypt bought a single cargo of Canadian soft red wheat overnight, one-day after buying one cargo of US soft white wheat.
Traders had hoped for more. Minneapolis wheat futures were hovering near technically oversold territory. The nine-day relative strength index for MGE December stood at 27 ahead of the open, rising to 32 by the close.
Traders view an RSI of 30 or lower as an oversold signal.