Chicago Board of Trade wheat futures closed higher on Thursday on bargain buying and on concern over a reduced harvest in Russia, the world's top exporter, following adverse crop weather this season. CBOT July soft red winter wheat settled up 7 cents at $4.95-1/4 per bushel. The contract found underlying support at its 200-day moving average and overhead resistance at its 100-day moving average.
K.C. July hard red winter wheat ended up 4-1/2 cents at $4.93-1/4 a bushel while MGEX July spring wheat held steady at $5.52-3/4. Wheat production in Russia is expected to drop to 67.4 million tonnes this year, down 21.5 percent from a record 2017 crop, after adverse weather affected both winter and spring wheat, French consultancy Agritel said on Thursday.
China's wheat output could drop as much as 20 percent this crop year after bad weather hit fields in major growing areas, likely boosting imports by the world's top producer and consumer of the grain, traders and an analyst said. The US Department of Agriculture reported weekly US wheat export sales at 461,600 tonnes, in line with trade expectations.
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