Spring wheat futures on the Minneapolis Grain Exchange closed sharply higher on Wednesday, with contract highs hit in several months, on slipover from a surge in Chicago Board of Trade wheat, traders said.
"We're being dragged around by Chicago," a Minneapolis trader said. CBOT wheat settled nearly 5 percent higher as concerns about dry weather in Europe and a surge in corn futures triggered speculative buying. Nearby CBOT contracts climbed the maximum daily limit of 30 cents per bushel before backing off a bit by the close.
In Minneapolis, May spring wheat ended up 16 cents, or 3 percent, at $5.39 per bushel, with July up 17-1/4 cents at $5.33 and new-crop December up 15-1/4 at $5.39-1/2.
Contract highs were hit in most months, including July, September and December. Funds bought about 1,000 wheat contracts in Minneapolis and 8,000 to 10,000 lots in Chicago, traders said. Volume was heavy, estimated by the MGE at 11,473 contracts, up from 8,680 on Tuesday. At the CBOT, most-active July wheat closed up 23 cents at $5.20-1/2 after reaching $5.27-1/2, above its previous contract high of $5.25.
Weather worries in Europe and the Black Sea region drove French wheat futures in Paris to contract highs in new-crop months. Outside of Europe, weather forecasts had a bearish slant.
Showers and cool weather in the US Plains this week favour development of the hard red winter wheat crop, forecaster DTN Meteorlogix said. In Australia, a key wheat producer, a chance for showers over the next several days should help replenish soil moisture ahead of planting, DTN Meteorlogix said. South Korea was seeking 22,400 tonnes of US wheat in a tender that closes on Thursday. Export business has been quiet this week.