Wheat futures at the Chicago Board of Trade were higher on Thursday on the export sales number released earlier by the US Department of Agriculture, traders said. CBOT March wheat was up 1-3/4 cents at $2.90 per bushel. Deferred months were 1 to 2-1/2 cents higher. Man Financial and O'Connor and Co each bought 100 March and R.J. O'Brien sold 200 March. Traders cited USDA's report that US wheat export sales last week totalled 710,300 tonnes. That was well above trade estimates for 350,000 to 650,000 tonnes.

Exports were routine overnight, with Japan in its weekly tender taking 125,000 tonnes of wheat with 85,000 tonnes coming from the United States.

The market was awaiting word from the European market about the bloc's first tender to export subsidised wheat overseas since June 2003.

Traders in London said prices in most regions changed little because participants were wary about committing themselves only hours away from the decision.

Cash basis bids for SRW in the Midwest were mostly steady and farmer selling stayed slow. Wheat futures were nearing oversold technical levels with the 9-day relative strength index for March Wednesday closing at 33. Technical traders view an RSI of 30 or less as one indicator of an oversold market. Technical support in the March contract is at $2.85 per bushel with resistance at $2.90.

Copyright Reuters, 2005