Wheat futures on the Chicago Board of Trade rose on Tuesday for a third straight session on short-covering tied to concerns about volatile weather in the southern US Plains, but trade was choppy and contracts closed below the day's highs.
Temperatures in the US Plains have warmed up sharply since a weekend freeze, while another cold spell is forecast for early next week. Ample global wheat stocks and poor export demand for US supplies kept a lid on the rally. CBOT May wheat settled up 1/4 cent at $4.66-3/4 after encountering chart resistance above its 50-day moving average of $4.70.
K.C. hard red winter wheat and MGEX spring wheat futures also settled modestly higher. The USDA said winter wheat ratings improved in the latest week in Kansas and Texas while Oklahoma ratings declined. The Kansas crop is developing ahead of normal, a factor that may render it more vulnerable to freeze damage. The Ethiopian government issued an international tender to buy around 499,000 tonnes of milling wheat following a serious drought. US markets including the CBOT will be closed on Friday for the Good Friday holiday. Thursday is the last trading day for CBOT April options.