Wheat futures on the Chicago Board of Trade rose on Thursday on improving export prospects for US grain, coupled with end-month short-covering, traders said. K.C. hard red winter wheat led the gains on stronger-than-expected weekly US all-wheat export sales totaling 801,007 tonnes, with hard red winter wheat representing more than half the total.
US soft red winter wheat is becoming more price-competitive, traders said, falling within $10 a tonne on a cost-and-freight basis of the Russian wheat purchased on Thursday by Egypt's main state wheat buyer.
US wheat markets gained while European wheat futures fell to four-year lows on worries about poor quality in the EU harvest. ADM Germany (formerly Toepfer International) said rain-damaged French wheat may not be of suitable quality for top buyer Algeria.
Gains in CBOT wheat limited by rising global wheat stocks. The London-based International Grains Council raised its forecast for world 2014/15 wheat production to 702 million tonnes, from 699 million previously.
CME Group said four grain companies have asked to increase by 12.6 million bushels the amount of wheat allowable in storage for delivery against CME's benchmark futures contract.