US wheat futures closed higher on Monday on short-covering but gains were limited by a big global supply of wheat and forecasts for rain in drier areas of the US Plains HRW wheat region. May wheat was up 1 cent per bushel at $5.23 per bushel. Funds bought 1,000 lots.
Additional pressure stemming from lower stock market and forecasts for rain in drier areas of the US Plains HRW wheat region. Iraq issues tender to buy 50,000 tonnes wheat. US wheat made up 15 percent of Iran 2008/09 wheat import - report. USDA said 20.7 million bushels of wheat inspected for export last week, slightly above estimates for 16.0 million to 20.0 million bushels.
Weekend rainfall to improve wheat crop conditions in Texas and Oklahoma but wheat lost to recent freeze may not recover. Rainfall and cool temperatures keeping fieldwork slow in the US Northern Plains spring wheat region. Large speculators increase long position in wheat futures and options as of last Tuesday and reduced short positions.