Hard red winter wheat futures on the Kansas City Board of Trade ended 2.7 percent higher on Friday as year-end short covering lifted the market. The benchmark March ended 16-1/4 cents, or 2.7 percent, higher after climbing as high as $6.20 on the day.
Traders said year-end short covering was a factor amid speculation over fund re-allocations for the new year. Chicago Board of Trade soybean futures led grain gains, with CBOT corn and wheat also posting strong gains. Traders said strength in crude oil helped support the market after news that the United Arab Emirates joined Saudi Arabia in deepening oil supply curbs.
Export news was bearish as USDA reported Friday that net weekly export sales of US wheat totalled 253,600 tonnes. Trade expectations were for 300,000 to 500,000 tonnes. But US wheat traders were eyeing a tender by Saudi Arabia to be held in January for 500,000 tonnes of high-quality hard wheat.
The tender specifications will preclude Black Sea wheat and give US, Canadian and Australian wheat a shot at the business, traders said. Japan was seeking to buy 30,000 tonnes of feed wheat and 200,000 tonnes of feed barley in a tender under the simultaneous buy and sell (SBS) system closing on January 7.