MUMBAI (Commodity Online): U.S. Wheat futures closed higher Tuesday on suspected short-covering and supportive signals from other markets, traders say. Wheat bounced after falling Monday.

It appeared short-covering boosted prices as non-commercial speculative funds hold a large short position in CBOT wheat, a trader says. Commodity funds bought an estimated 3,000 wheat contracts at CBOT.

Weakness in the U.S. dollar and gains in CBOT soybeans added spillover support, a trader says. PFG Best advises traders to “buy long lightly” if nearby CBOT May Wheat closes above $4.92 a bushel and “buy heavily” above $5.

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Despite the pop, the markets remain in a technical downtrend, a broker says. CBOT May wheat ended up 7 3/4 cents at $4.87, KCBT May wheat rose 6 1/2 cents at $4.94 3/4, and MGE May wheat rose 6 1/4 cents to $5.13 1/2.

Courtesy: CBE Group

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