US wheat futures rose on Friday as investors covered short positions ahead of the weekend, traders said. Volatile markets make investors more likely to cash out positions rather then leaving themselves exposed when the markets are closed, traders said.
The benchmark CBOT May wheat contract gained 1.3 percent, closing near its intraday high. For the week, CBOT wheat fell 2.6 percent. MGEX spring wheat also rose, with new-crop contracts leading the way amid concerns that farmers will switch some acreage that is typically seeded with wheat to corn. A weak dollar, which signals a growing appetite for risky assets, also supported wheat futures.
Crop-friendly showers and mild temperatures moved through the US winter wheat growing areas this week, providing valuable soil moisture, said Don Keeney, meteorologist for MDA EarthSat weather. High temperatures in the and Plains forecast to remain in the 60s (degrees Fahrenheit) to 70s F for the next two weeks. Farm Futures survey of farmers pegged 2012 total US wheat acreage at 56.7 million, winter wheat acreage at 41.9 million acres, other spring wheat acreage at 12.4 million and durum acreage at 2.4 million.
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