Wheat futures on the Chicago Board of Trade closed narrowly mixed on Friday on light bargain-buying one day after falling to four-year low, traders said. K.C. hard red winter wheat also closed mixed but MGEX spring wheat futures ended lower, losing ground to CBOT wheat on inter-market spreads. Plentiful world wheat supplies hung over all three markets, along with a strong dollar, which makes US grains less attractive on the world market.
The dollar has been driven higher by the divergent monetary policy outlooks between the US Federal Reserve's contemplating a rate hike and the ECB and Bank of Japan mulling further stimulus. Additional pressure stemmed from forecasts for showers in the southern US Plains hard red winter wheat belt, where producers are planting the 2015 crop. There was little immediate market reaction to news from USDA that an experimental genetically engineered wheat, never approved for sale, was found growing in a second US state.
Traders are positioning for USDA's quarterly stocks and small grains reports due Tuesday. Analysts expect USDA to raise its estimate of US 2014 wheat production. Australia's wheat production is expected to drop 11 percent this year as a dry spring in some of the country's key producing states curbs yields, giving a breather to an amply supplied global market, a Reuters survey showed. For the week, CBOT December wheat was nearly unchanged, falling 1/4 cent per bushel. K.C. December hard red winter wheat rose 3-1/2 cents, halting a four-week slide. MGEX December spring wheat fell 2-1/4 cents, its fifth weekly decline.