US wheat futures rose on Thursday, rebounding from two-month lows, amid technically oversold signs in the market, traders said. A weak dollar, which made US wheat more attractive to overseas buyers, also was supportive to wheat futures. Forecasts for hot and dry weather in key growing areas of the southern US Plains added strength to the wheat market.
Winter wheat will be emerging from its dormancy stage in many areas during the next few weeks and many areas have been stressed by dry soils. The Chicago Board of Trade March soft red winter wheat futures contract rose 8-3/4 cents to settle at $5.19-1/2 a bushel while the CBOT May wheat contract rose 8 cents to $5.31 a bushel. Funds bought 3,000 lots.
March options expire on Friday and trade focused on $5.10-$5.30 strike price. The Kansas City Board of Trade March hard red winter wheat contract ended up 11-3/4 cents at $5.58-1/4 a bushel and KCBT May wheat ended up 12-1/2 cents at $5.67.
Minneapolis Grain Exchange spring wheat for March delivery was up 5-3/4 cents to close at $6.25-3/4 a bushel while the MGE May contract rose 9-1/2 cents to $6.12-1/4 a bushel. CBOT estimated volume was large at 108,176 futures and 13,234 options. In Kansas City, an estimated 19,374 futures traded. Minneapolis volume was seen at 3,747 futures. Paris milling wheat was down 0.25 to up 0.75 euro per tonne.