CHICAGO: Wheat futures on the Chicago Board of Trade closed higher on Thursday in a technical bounce, following an eight-session selloff that pushed the spot wheat contract to its lowest level in a decade.
Most-active CBOT December wheat settled up 6-1/2 cents at $3.94-3/4 per bushel.
K.C. hard red winter wheat futures and MGEX spring wheat futures also closed higher.
Commodity funds hold a large net short position in CBOT and K.C. wheat futures, leaving the market vulnerable to bouts of short-covering.
Some analysts expect US wheat to attract fresh export demand at these levels, but weekly government export sales data fell short of trade expectations.
The US Department of Agriculture reported export sales of US wheat in the week to Aug. 25 at 279,400 tonnes for 2016-17, below expectations for 300,000 to 600,000 tonnes.
Japan's Ministry of Agriculture said it has resumed buying US white wheat after a trade halt following the discovery of unapproved genetically modified wheat in July.
The CBOT reported 209 CBOT September wheat deliveries and 813 K.C. wheat deliveries, with only a few scattered commercial stoppers.
The MGEX reported six spring wheat deliveries.
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