Chicago Board of Trade wheat futures rose more than 3 percent Tuesday on technical buying, including short-covering, and uncertainty about the size of the US winter wheat crop as an annual crop tour began scouting fields in top producer Kansas, traders said. Chicago Board of Trade July wheat futures settled up 18-3/4 per bushel at $5.29-1/4, after reaching $5.30, its highest since March 2.
K.C. July hard red winter wheat ended up 15-1/2 cents at $5.53 a bushel and MGEX July spring wheat rose 8 cents at $6.23-1/2. Funds hold a net short position in CBOT wheat futures, leaving the market vulnerable to bouts of short-covering. Traders await results of the Wheat Quality Council's annual Kansas wheat tour, which began scouting fields on Tuesday.
The USDA late Monday rated 33 percent of the US winter wheat crop in good to excellent condition, up from 31 percent a week earlier. The USDA said the US spring wheat crop was 10 percent seeded by Sunday, behind the five-year average of 36 percent.