Chicago Board of Trade wheat futures closed higher on Wednesday on a short-covering bounce one day after the spot contract dipped below $4 for the first time in nearly a decade, traders said. CBOT September wheat settled up 9 cents at $4.10-1/4 per bushel. K.C. hard red winter (HRW) wheat and MGEX spring wheat futures also closed higher but trailed the gains in CBOT wheat.
Commodity funds hold a large net short position in CBOT wheat, leaving the market vulnerable to bouts of short-covering. Rally limited by plentiful US and world wheat supplies. Persistent rain in recent days and weeks is delaying Germany's wheat and rapeseed harvests, creating uncertainty about the crop outcome, the Association of German Farmers said.