US wheat futures closed higher on Tuesday on spillover support from rally in the corn market and on fund buying. CBOT December up 3 cents per bushel at $5.23. Funds bought 2,000 lots. KCBT December up 3-3/4 at $5.25-1/2. MGEX December $5.44-1/2, down 1-1/2. Gains limited by USDA's November supply/demand report that showed US 2009/10 wheat ending stocks above trade estimates.
Also weighed down by firm dollar and profit-taking after the strong rally on Monday. USDA said 2009/10 US wheat ending stocks 885 million bushels, above estimates for 870 million. USDA revised 2009 US wheat crop down to 2.216 billion bushels from 2.220 billion to reflect a downward revision in harvested acres after government did a special survey of durum and spring wheat because of late harvest.
Plentiful soil moisture reserves combined with warmer and drier weather boosting growth and emergence of 2010 US winter wheat crop, enhancing production potential. USDA late on Monday said 86 percent of the US winter wheat crop had been planted, up from 79 percent a week ago but down from the five-year average of 93 percent. Ukraine winter wheat sprouts on 91.5 percent sown area. Analyst raises Ukraine 2009 grain crop forecast.