US wheat futures closed higher on Tuesday amid slow seedings of the US spring wheat crop because of wet weather. Chicago Board of Trade soft red winter May wheat closed 2-1/2 cents higher at $5.10-1/2 per bushel, supported by higher Minneapolis spring wheat futures. Minneapolis May wheat rose 4-3/4 cents to $6.63 per bushel. Kansas City hard red winter wheat gained half a cent to $5.65 per bushel.
Wheat also bounced back from a bout of overselling on Monday, which came amid fears swine flu could hurt livestock production, one trader said. Open interest was large in CBOT May wheat at 29,455 contracts as of Tuesday's open. Typically open interest is down to 6,000-8,000 after option expiration and the index roll of long positions.
That could lead to increased volatility on first position day on Wednesday and/or first notice day on Thursday for May deliveries-traders. USDA said 15 percent of the US spring wheat crop seeded, below the 36 percent five-year average and below trader expectations for 20 percent. USDA said US winter wheat crop condition 45 percent good to excellent, up from 43 percent a week ago and slightly below the 46 percent of a year ago. Colder and wetter weather in northern US Plains continues to slow spring wheat seedings.
Widespread thunderstorm activity in US Plains HRW wheat region favours jointing to reproductive wheat. Traders said the global spread of swine flu was still being talked about but they were skeptical it would have a lasting impact on grain consumption.
Despite the name "swine flu", the strain has not been detected in pigs, but amy perception of a link could cut demand for pork and livestock feed.