CBOT wheat ends higher on weaker dollar, US Plains dryness
- The dollar index has declined for the past two weeks as risk sentiment improves.
- Firming cash prices for milling wheat from the Black Sea region helped support CBOT wheat.
- K.C. July hard red winter wheat ended up 14-1/2 cents at $4.72-1/4 a bushel a
CHICAGO: Chicago Board of Trade wheat futures rose more than 2% on Thursday as a weaker US dollar favored export prospects and dry weather threatened crops in parts of the southern US Plains, traders said.
The dollar index has declined for the past two weeks as risk sentiment improves and equities surge on optimism that the worst of the economic downturn from the coronavirus has passed.
Firming cash prices for milling wheat from the Black Sea region helped support CBOT wheat, some analysts said.
CBOT July soft red winter wheat settled up 11-3/4 cents at $5.23-3/4 per bushel after reaching $5.29, the contract's highest since April 28.
K.C. July hard red winter wheat ended up 14-1/2 cents at $4.72-1/4 a bushel and MGEX July spring wheat rose 6 cents to finish at $5.26-1/4.
The US Department of Agriculture reported export sales of US wheat in the week ended May 28 at 616,800 tonnes (old and new crop years combined), in line with a range of trade expectations for 150,000 to 850,000 tonnes.
Traders noted dryness in parts of the southern US Plains where winter wheat is still developing ahead of harvest. The weekly US Drought Monitor showed moderate drought across 27% of Kansas, the top US wheat-producing state.
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