US wheat futures mostly firm

24 Oct, 2010

US wheat futures closed mostly higher on Friday, supported by prospects for US wheat to remain competitive on the export market due to Russia's extension of its grain export ban. Traders also noted position-squaring ahead of the weekend. The benchmark Chicago Board of Trade December soft red winter wheat contract settled up 2 cents at $6.70-3/4 per bushel.
For the week, front-month CBOT wheat fell 5 percent. Funds bought 1,000 CBOT contracts. CBOT wheat volume near 44,000, below the 30-day average of over 70,000. At the Kansas City Board of Trade, December hard red winter wheat settled up 2-1/2 cents at $7.19 per bushel; MGEX December spring wheat down 3/4 at $7.27-3/4. US Agriculture Department's Commodity Credit Corp issued a tender on Friday to buy up to 9,550 tonnes of US hard red winter wheat for donation to Mauritania.
Much-needed rains moved across a section of the US winter wheat belt in the past day, improving conditions for planting and germination of wheat seeds. Russian Prime Minister Vladimir Putin said Russia extended grain export embargo until July.

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