US wheat ends up on weather worries, led by MGEX

CHICAGO: US wheat futures closed higher on Wednesday on poor weather in several key global production areas, including dryness in western Europe and excessive wet weather in the northern US Plains and Canada.

* Spring wheat futures at the Minneapolis Grain Exchange led the advances, with the front July contract rising to a 3-1/2 month high on continuous price charts on firm cash markets for high-protein spring wheat.

* Trade was fairly thin, with CBOT and KCBT wheat volume down roughly one-third from the prior 30-day average. But MGEX volume was more then 20 percent above its 30-day average.

* European wheat futures also rose as forecasts for rain in France and Germany this week were scaled back, focusing attention on the risk to crops from drought in the European Union's top two grain producers.

* A Reuters poll of nine analysts projected US 2011 plantings of spring wheat other than durum at 13.751 million acres (5.565 million hectares), down from USDA's March 31 forecast of 14.427 million.

* Russian government will make a decision on whether to extend the grain export ban within days, First Deputy Prime Minister Viktor Zubkov said.

* Russian wheat exports will only be moderate if the country ends an export ban this summer, as it will need much of a large new wheat harvest itself, a leading commodity analyst said during the Reuters Black Sea grain forum.

* Ukrainian government canceled grain export quotas that were due to remain in place until June 30, Interfax Ukraine news agency quoted Farm Minister Mykola Prysyazhnyuk as saying.

Copyright Reuters, 2011