CBOT wheat ends up on bargain buying, dryness in Russia

CHICAGO: Chicago Board of Trade wheat futures closed higher on Monday on bargain buying after the December contract dipped to a 1-1/2 week low, and on worries about dry conditions inhibiting planting in Russia, the top global wheat exporter, traders said.

CBOT December soft red winter wheat settled up 6 cents at $5.50-1/4 per bushel, rebounding after a slide to $5.37-3/4, the contract's lowest since Sept. 17.

Traders await direction from the US Department of Agriculture's annual US small grains and quarterly stocks reports due on Wednesday.

K.C. December hard red winter wheat ended up 7-1/2 cents at $4.82-3/4 a bushel while MGEX December spring wheat settled down 1/4 cent at $5.29-1/2.

Russia badly needs rains to arrive within the next few weeks as its farmers continue to sow the 2021 winter wheat crop, Sovecon agriculture consultancy said.

However, Russian wheat export prices fell slightly last week, following a slide in CBOT wheat and a weaker rouble currency, analysts said.

Ahead of the USDA's weekly crop progress report, analysts surveyed by Reuters on average expected the government to show the US winter wheat crop as 35% planted.

The USDA reported export inspections of US wheat in the latest week at 563,427 tonnes, in line with trade expectations for 400,000-650,000 tonnes.