MUMBAI (Commodity Online): U.S. wheat futures closed higher on Wednesday in a late rally on month-end positioning, traders say. Weakness in the U.S. dollar and gains in crude oil, soybeans and corn lent some spillover support, they say.
The markets had traded lower for most of the day session after the USDA raised its forecast for 2009-10 U.S. wheat production and said U.S. wheat stocks as of Sept. 1 were above trade expectations.
Before bouncing, CBOT December wheat hit a fresh contract low of $4.39 1/2 per bushel, below Tuesday’s contract low of $4.41 1/4. There is technical support in the area of $4.30- $4.40, a CBOT trader says. Commodity funds bought an estimated 2,000 wheat contracts at the CBOT.
Trade sitting at the comfort of home. Start with a mere 50$CBOT December wheat closed up 10 cents at $4.57 1/2, Kansas City Board of Trade December wheat rose 8 cents to $4.76 1/2, and Minneapolis Grain Exchange December wheat was up 8 1/2 cents at $4.91 3/4.
Courtesy: CBE Group
