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Chicago Board of Trade (CBOT) wheat futures closed higher on Monday on technical buying and fund-driven short-covering along with signs of improving export demand for US supplies, traders said. CBOT March soft red winter wheat settled up 1 cent at $5.18-1/4 per bushel, turning higher after spending most of the session in negative territory.

K.C. March hard red winter wheat ended down 1/2 cent at $4.93-3/4 a bushel, while MGEX March spring wheat rose 5-1/4 cents to $5.73-3/4. MGEX March wheat gained against back months on spreads as speculators rolled short positions forward, traders said.

The US Department of Agriculture (USDA) said private exporters sold 128,000 tonnes of US hard red winter wheat to Nigeria for delivery in the 2018-19 marketing year that began June 1, 2018. The USDA said private exporters also sold 120,000 tonnes of US soft red winter wheat to Egypt for delivery in 2018-19.

Traders continued to digest the USDA's Feb. 8 supply/demand report in which the government raised its forecast of US 2018-19 wheat ending stocks above an average of analyst expectations. The USDA also on Friday raised its estimate of top exporter Russia's 2018-19 harvest. The USDA on Monday reported export inspections of US wheat in the latest week at 562,307 tonnes, in line with trade expectations for 400,000 to 600,000 tonnes.

Copyright Reuters, 2019


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