CBOT wheat ends higher in light technical rebound

CHICAGO: Chicago Board of Trade May wheat futures closed higher Tuesday in a light rebound from multi-month lows set a day earlier, traders said.

Large speculators including commodity funds hold a hefty net short position in CBOT wheat, leaving the market prone to bouts of short-covering.

Rally limited by forecasts for much-needed rains in the southern US Plains over the next week that should bolster yield prospects for the region's developing winter wheat crop.

CBOT May wheat settled up 3-3/4 cents at $4.24-1/2 per bushel.

K.C. May hard red winter wheat ended up 2-3/4 cents at $4.24 and MGEX May spring wheat rose 2 cents at $5.35.

Position-squaring noted ahead of the US Department of Agriculture's planting intentions and quarterly stocks reports on Friday. Analysts surveyed by Reuters expect the USDA to project a decline in US spring and total wheat plantings and a year-on-year increase in March 1 stocks.

India imposed a 10 percent import tax on wheat with immediate effect, government sources said, reinstating the tariff after a gap of nearly four months that saw large overseas purchases.