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CBOT wheat closes higher on soy/corn spillover

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed higher Thursday on spillover support from a rally in soybeans and corn, traders said.

CBOT wheat closed 1/2 to 4-1/4 cents higher, with March up 3-1/2 at $2.63-1/2.

"Wheat just followed everything else. We're getting precipitation in the Plains states now for the first time, which will help. The spring rains are more important, but this will help the crop," said Shawn McCambridge, analyst for Prudential Securities.

Wheat fell in early dealings and reluctantly moved to the higher close with the early pressure seen coming from the moisture being received this week in the US Plains hard red winter wheat region.

Heavy snowfall was expected to continue Thursday in southern portions of the Plains, with the largest accumulation in central Oklahoma, Weather Services Corp.

Six inches of snow fell in the Oklahoma City area and lighter amounts registered elsewhere in Oklahoma and southern and southwest Kansas. Melted moisture from the snow should total about 0.25 to 0.50 inch in Oklahoma and 0.10 to 0.20 inch in southwest Kansas, Weather Services said.

Meteorologists said the snows should boost crop prospects in the Plains, which have suffered from below-normal precipitation since the wheat crop was seeded last fall. Export activity remained uninspiring, traders said. Japan's Food Agency said it bought 210,000 tonne of wheat in its weekly tender, with 110,000 tonnes of that purchased from the United States. Also traders in Taipei said Taiwan Flour overnight bought 67,900 tonnes of US wheat.

Funds sold 3,600 lots. FIMAT Futures Inc. bought 500 March contracts, Cargill Inc. bought 100 March and 200 July, O'Connor & Co. sold 700 March and R.J. O'Brien & Associates sold 600 March, floor sources said.

CBOT wheat futures volume was estimated by the CBOT at 32,000 lots, above the 24,410 lots traded Wednesday.

Wheat options volume was estimated at 9,000 lots.-Reuters