CBOT wheat rallies on weather outlook

CHICAGO: Chicago Board of Trade soft red winter wheat futures rose 2.9 percent to a 1-1/2-month high on Thursday on concerns that dryness in key growing areas around the globe could cut into supplies, traders said.

The latest forecasts called for hot and dry weather throughout the summer in western Europe, Ukraine and China.

The rally accelerated as buy stops were taken out when the benchmark CBOT July soft red winter wheat contract broke through technical resistance at its 100-day and 200-day moving averages.

K.C. hard red winter wheat rose 1.9 percent. MGEX spring wheat also closed in positive territory but gains were limited as traders said that market felt toppy after hitting its highest in 2-1/2 years earlier this week.