CBOT wheat futures hit two-week high

27 Jun, 2015

Wheat futures on the Chicago Board of Trade rose on Thursday, touching a two-week high on technical buying and worries about harvest delays in the US Midwest, traders said. CBOT July wheat reached $5.33 a bushel, nearly matching its 200-day moving average, before paring gains to settle at $5.32, up 14 cents on the day.
Storms crossing the Midwest in the last day dumped up to 7 inches (17.8 cm) of rain in parts of Iowa and Missouri, with another system poised to soak Missouri through southern Ohio later this week, potentially adding to harvest delays for soft red winter wheat. Stressful dry conditions in Canada also lent support. K.C. hard red winter wheat and MGEX spring wheat futures closed higher, although K.C. wheat's premium over CBOT wheat continued to erode.
USDA reported export sales of US wheat in the week ended June 18 at 434,300 tonnes for 2015-16 delivery, topping trade expectations. The International Grains Council cut its forecast for 2015-16 world wheat production to 711 million tonnes from 715 million tonnes previously. Wheat exports from Russia, Ukraine and Kazakhstan will fall 5 percent in the 2015-16 marketing year, a Reuters poll showed. China's 2015-16 wheat imports may reach 3 million tonnes, double the previous year's total, after rain damaged the local crop in some areas, analysts said. Friday is the last trading day for CBOT July options.

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