"Kansas City supported us. Funds were a bigger buyer down there," one Minneapolis trader said. MGE March wheat settled up 5-1/2 cents at $3.92-1/2 after reaching a session high of $3.93 nearing its contract high of $3.99.
Deferred months-closed up 4-1/2 to 6-1/2 cents. Volume was estimated by the exchange at 5,876 contracts, up from 2,967 on Tuesday. Funds bought 700 to 1,000 contract on the day, with UBS Warburg a featured buyer of about 400 to 500 lots, MGE traders said.
Funds bought 10,000 contracts in Chicago and at least 4,000 in Kansas City, according to trader estimates. Funds remain net short in Chicago wheat, although their net short position has dwindled after a roughly two-week short-covering spree.
Meanwhile, Commodity Futures Trading Commission data shows funds have been building their net long positions in MGE and Kansas City Board of Trade futures.
Hedge-related selling emerged near the day's highs, slowing the rally. Traders noted selling in MGE September wheat at around $3.87 and in December above $3.90.
Fundamental news remained scarce, and exports were quiet overnight.
Crop weather in the United States winter wheat belt was generally satisfactory, although traders voiced concern that dry and unseasonably warm temperatures in the southern Plains could leave the crop more vulnerable to damage if severe cold returns.