US wheat futures closed sharply higher on Monday as technical buying and short-covering sparked a rebound after sharp declines on Friday, traders said. Weaker dollar and spillover from soaring corn and soyabean futures added support. Some global weather concerns surfacing, including dryness in parts of Australia as dry weather returns; weather goes against Argentine wheat.
But US wheat trade was seen as mostly technical in nature, divorced from fundamental factors. At the Chicago Board of Trade, September soft red winter wheat settled 35-1/2 cents higher, or 4.3 percent, at $8.59-3/4 per bushel. Back months ended up 32 to 35-1/2 cents.
Commodity funds were net buyers of 3,000 CBOT wheat contracts, traders said. At the Kansas City Board of Trade, September hard red winter wheat settled up 26-3/4 cents, 3.1 percent, at $8.90 per bushel, with back months up 26 to 35 cents. At the Minneapolis Grain Exchange, September spring wheat futures closed up 15-1/4 cents, 1.6 percent, at $9.27-1/2 per bushel, with December up 21-1/2 at $9.44.
Rally in nearby MGE spring wheat was capped by hedge-related selling after an active harvest weekend, traders said. Spring wheat cash markets also ease as harvest helps fill supply lines, following a slow start. Hot, dry weather in US Northern Plains favourable for harvest of the spring wheat crop.
After the close, USDA said the US spring wheat crop was 35 percent harvested by Sunday, behind the five-year average of 54 percent. US winter wheat was 95 percent harvested. CBOT wheat volume was moderate at an estimated 81,390 futures and 34,804 options. KCBT volume estimated at 21,560 futures; MGE volume at 7,306 futures. USDA reported export inspections of US wheat in the latest week at 36.3 million bushels, above a range of trade estimates for 28 million to 33 million.
Jordan tenders for 100,000 tonnes wheat. Continued talk about plentiful supply of Ukraine and Russian wheat but much of the crop is feed quality rather than milling quality. CFTC's supplement showed large speculators reduced their net short position in CBOT wheat to 22,830 contracts in the week ended August 12, down 2,200 lots.