Wheat futures on the Chicago Board of Trade closed modestly higher on Wednesday, following strength in corn and soybeans amid a lack of market-moving news, traders said. CBOT December wheat settled up 1/4 cent at $4.20-1/4 per bushel. K.C. December hard red winter wheat settled up 3-1/2 cents at $4.25-1/4 a bushel and MGEX December spring wheat ended up 3 cents at $5.30-3/4.
CBOT wheat was underpinned by a huge net short position held by commodity funds, which leaves the market vulnerable to periodic short-covering bounces. Rallies were limited by plentiful US and global grain supplies. Egypt's central bank has allocated $1.8 billion to ensure six months of reserves in all strategic goods, Supply Minister Mohamed Ali El-Sheikh said, after widespread sugar shortages prompted talk of an impending food crisis. Egypt already has five months worth of wheat and vegetable oil reserves and would ensure that Egyptians receive a steady supply of essential foods, Sheikh said.