CBOT wheat ends higher on bargain buying, dollar weakness
- CBOT September soft red winter wheat settled up 9-1/4 cents at $5.32-3/4 per bushel, a day after hitting a one-week low at $5.19-1/4.
- The US dollar index fell to a two-year low as the Federal Reserve affirmed its commitment to holding rates near zero.
CHICAGO: Chicago Board of Trade wheat futures closed higher on Wednesday on bargain buying, uncertainty about the size of Russia's crop and optimism about fresh export demand for US wheat as the dollar declined, traders said.
CBOT September soft red winter wheat settled up 9-1/4 cents at $5.32-3/4 per bushel, a day after hitting a one-week low at $5.19-1/4.
K.C. September hard red winter wheat ended up 9 cents at $4.45-3/4 a bushel and MGEX September spring wheat rose 4-3/4 cents to finish at $5.11.
The US dollar index fell to a two-year low as the Federal Reserve affirmed its commitment to holding rates near zero. A weak dollar tends to make US grains more competitive globally.
Russian agriculture consultancy SovEcon cut its forecast for Russia's 2020 wheat crop by 400,000 tonnes to 79.3 million tonnes as dry weather is worsening conditions for spring wheat.
Ahead of Thursday's weekly US Department of Agriculture export sales report, traders expected the government to report US wheat sales in the week ended July 23 at 250,000 to 650,000 tonnes.
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