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CBOT wheat closes higher on export data

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed higher Monday on higher-than-expected US export inspections and strength in soyabeans.

CBOT wheat closed 1 to 2 cents higher, with May up 1-3/4 at $2.54-1/2.

Soyabeans were buoyed Monday on renewed concerns over crop prospects following disappointing rainfall over the weekend in the US Midwest growing region.

Wheat found some favour from export news after the US Department of Agriculture said wheat export inspections were 16.55 million bushels in the week of March 23, compared with trade estimates for 10-15 million.

Additional support came on weather jitters as concerns surfaced about the rapid development of the US winter wheat crop.

Unseasonably warm weather and recent heavy rainfall were boosting development of the US Plains hard red winter wheat crop, Weather Services Corp. meteorologist Mike Palmerino said Monday. Temperatures reached into the 70s and 80s degrees Fahrenheit in the southern Plains over the weekend. Palmerino cautioned that the rapid development of the crop could leave it vulnerable to harm from cold weather, should a cold snap surface in early April.

Export activity included news that Algeria bought at least 50,000 tonnes of German soft wheat at $128 per tonne, cost and freight, for shipment in April and May, European grain traders said on Monday.

Traders said Algeria bought a minimum of two cargoes of 25,000 tonnes each and they did not exclude the possibility that it had purchased up to 100,000 tonnes.

Algeria last week bought 100,000 tonnes of French wheat at $112 per tonne, cost and freight, for shipment between April 16 and 30 and between May 1 and 15.

The Korea Flour Milling Co Ltd. bought 15,900 tonnes of US No. 1 wheat from Japanese trading house Itochu Corp via tenders on Friday, traders said on Monday.

Technical traders cited support in the May contract at $2.50-1/4 and resistance at $2.56-3/4.

Funds bought 1,000 lots. Cargill Investor Services bought 300 May, Cargill Inc. sold 200 May, E.D. & F. Man International bought 400 May and Prudential Securities sold 200 May.

CBOT wheat futures volume was estimated by the CBOT at 16,000 lots, below the 38,765 lots traded Friday.

Wheat options volume was estimated at 2,500.

-Reuters