US wheat futures soared 2 to 3 percent on Friday, wrapping up a wild week in which high-protein spring wheat futures at the Minneapolis Grain Exchange soared to all-time highs approaching $12 a bushel. The move in Minneapolis, the smallest of the three US wheat exchanges, lifted wheat futures at the world benchmark Chicago Board of Trade and the Kansas City Board of Trade as well.
Those markets rallied after coming under pressure early in the session as traders booked profits. "Protein wheats (traded in Minneapolis and Kansas City) are definitely leading the way up, trying to slow demand and ensure acreage," one CBOT floor trader said.
MGE March spring wheat settled up the daily 30-cent limit at $11.94-3/4, the highest-ever price for any US wheat futures contract. The contract soared $1.32 this week. CBOT March wheat settled up 22 cents, 2.3 percent, at $9.62-1/2 per bushel, up 53-1/2 cents for the week. KCBT March wheat on Friday climbed 29-3/4 cents, or 3 percent, to close at $10.11-1/4.
US, markets will be closed on Monday for the Martin Luther King, Jr. Day holiday. Spring wheat futures shot higher this week on extremely tight old-crop supplies, coupled with relentless demand from exporters and domestic millers.
The market also is concerned about a potential drop in 2008 seedings in the northern US Plains due to competitive prices for soybeans, barley and other crops.
Analytical firm Informa Economics on Friday reportedly estimated 2008 plantings of spring wheat other than durum at 12.648 million acres, down from its December forecast of 13.0 million acres and below the 13.3 million seeded in 2007.
"The spring wheat number is bullish for Minneapolis. Some of the decline was probably due to increased intentions for durum (wheat) acres," said Jerry Gidel, an analyst for North America Risk Management Inc. Informa estimated 2008 US winter wheat plantings at 46.6 million acres, matching USDA's January 11 forecast.
The firm showed US durum wheat plantings at 2.590 million acres, below its December estimate of 2.7 million but up from 2.1 million acres seeded in 2007. USDA will issue its first forecasts of US spring and durum wheat acreage on March 31.
Wheat export news was quiet overnight, although trade wires noted rumours that Iraq might soon seek wheat. On a bearish note, India's farm minister said the country has no immediate plans to import wheat as it aims to harvest more than 75 million tonnes, about the same as last year's harvest.