Hard red winter wheat futures on the Kansas City Board of Trade ended 2 percent higher Friday after recouping early losses in a mostly technical run fuelled by gains in outside markets, traders said. Better-than-expected weekly export sales and dry weather worries in key US wheat-growing areas buoyed prices.
Volatile trade saw benchmark KCBT March range on the day from $5.88 to $6.24-3/4 before settling up 12-1/2 cents, or 2 percent, at $6.10-1/2 a bushel. May settled up 12-1/2 at $6.21-1/4. Traders said that, after opening lower, wheat prices turned around partly on strength in corn and soybean futures. A run through a series of minor buy stops took prices to their highs, led by Chicago Board of Trade wheat futures.
CBOT soy turned lower late but wheat prices held onto gains, partly due to the strong weekly export sales figures reported Friday by the US Department of Agriculture. USDA said weekly export sales of US wheat totalled 413,200 tonnes for the current and new marketing years. Trade expectations were for 150,000 to 350,000 tonnes.
But export enthusiasm was checked by news that exporters cancelled sales of 356,000 ns was a continuing concern for the new HRW wheat crop, though the crop is still dormant in key growing areas. More moisture in the next few weeks is needed. Also in the news, EU wheat was seen competitive with an improved export outlook improved.