MUMBAI (Commodity Online): U.S. Wheat futures settled higher Wednesday on technical buying and supportive signals from outside markets. Prices rose for the second day amid ideas the markets were technically oversold, says Jerry Gidel, analyst for North America Risk Management Services.

Short-covering helped accelerate gains as speculative funds are heavily short in CBOT wheat, a trader says. A dip in the U.S. dollar added support, Gidel notes. A soft dollar is often seen as supportive because of perceptions it makes U.S. grains more attractive to foreign buyers.

Trade commodities or equities from across the globe. Join Now

CBOT May Wheat approached psychological resistance at $5 a bushel and closed near its 20-day moving average around $4.98 3/4.

Commodity funds bought an estimated 3,000 contracts at CBOT. CBOT May wheat finished up 9 cents at $4.96, KCBT May wheat ended 7 1/2 cents higher at $5.02 1/4, and MGE May wheat jumped 6 3/4 cents to $5.20 1/4.

Courtesy: CBE Group

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook