Short-covering boosts wheat and corn ahead of weekend

CHICAGO: US wheat futures rose 1.2 percent on Friday as traders unwound bearish bets they placed on the grain when the market spiralled to a 14-month low earlier this week.

The most-active Chicago Board of Trade soft red winter wheat contract hit its highest since March 6 as investment funds were reluctant to keep their massive short position in place as the US crop emerges from dormancy, which leaves it vulnerable to weather damage.

Corn futures also were higher on short covering as the concerns about muddy fields and cold soils raises questions about growers being able to seed as much corn as they intended to in the coming weeks.

"Some traders are just getting a little bit bullish due to spring planting delays," said Terry Reilly, senior commodity analyst, Futures International.

Soybean futures were firm as traders waited for fresh news about a potential trade deal between Beijing and Washington.

"Many of the headlines remain familiar with ongoing trade talks between the US and China, flooding concerns for the coming US planting season, and increased harvest estimates around the world," brokers Allendale said in a note.

At 11:09 a.m. CDT (1609 GMT), Chicago Board of Trade May wheat futures were up 5-1/2 cents at $4.58-1/4 a bushel. The most-active contract has risen 4.2 percent so far this week and was on track for its biggest weekly gain in seven months.

CBOT May corn futures were up 1-1/2 cents at $3.71-3/4 a bushel. Corn has risen four days in a row and was on track for a weekly gain of 2.1 percent.

CBOT May soybeans were 8-1/2 cents higher at $9.07 a bushel. The most-active contract has risen 1.2 percent this week.

The US soybean processing pace slowed by more than expected in February, although the crush was still the largest on record for the month, according to National Oilseed Processors Association (NOPA) data released on Friday.

NOPA members, who handle about 95 percent of all soybeans crushed in the United States, processed 154.498 million bushels of soybeans last month, down from 171.630 million bushels in January but up from 153.719 million bushels in February 2018, the previous record for the month.