Wheat futures on the Chicago Board of Trade closed higher on Monday on technical buying, including fund short-covering, traders said. A softer dollar lent support, in theory making US grains more competitive on the world market. The dollar index fell amid investor concerns over protectionist rhetoric by US President Donald Trump.
CBOT March wheat settled up 5 cents at $4.33-1/4 per bushel. K.C. March hard red winter wheat ended up 1-3/4 cents at $4.44-3/4 a bushel while MGEX March spring wheat fell 4-1/4 cents at $5.64-1/4.
Funds hold a large net short position in CBOT wheat, leaving the market vulnerable to bouts of short-covering.
Rally capped by ample US and world supplies of old-crop wheat, and by lackluster export demand.