US spring wheat futures rose on Friday for a second straight session as rain in the northern US Plains further delayed planting at a time of a global shortage of high quality wheat. Winter wheat futures were mixed as concerns about North American and European production were outweighed at times by profit-taking. Wheat markets remained on track for the first weekly decline in three weeks.
Soyabeans firmed and touched a two-month high on concerns over delays to US plantings, with technical buying adding support. Corn fell 1 percent on technical selling and on improved planting weather in the eastern Corn Belt. Chicago Board of Trade July wheat slipped 0.3 percent to $7.67-1/4 a bushel by 10:10 am CDT (1510 GMT). Sharp declines on Tuesday and Wednesday left Chicago wheat down about 6 percent on the week, the largest weekly fall in seven weeks.
July spring wheat futures on the Minneapolis Grain Exchange gained 1.6 percent to $10.36-1/4 a bushel, widening its largest premium to Chicago wheat in three years amid worries about tight global supplies of high protein wheat. "Some planting worries have spring wheat feeling very buoyant today. The market is also a little bit oversold and the weak dollar is working to alleviate those conditions," said Sterling Smith, analyst with Country Hedging. More rain was expected in northern US Plains on Friday, and although drier weather was expected through the weekend, some thunderstorms remained in the forecast.
The dollar fell to a near one-month low against a basket of currencies on Friday after a bleak US payrolls report added to recent signs of a slowdown in economic recovery. Doubts that exports from the Black Sea region can cover shortfalls expected in North America and Europe gave underlying support to wheat.