CBOT wheat ends higher on technical buying, dryness in Russia

CHICAGO: Chicago Board of Trade wheat futures closed higher on Friday on technical buying and concerns about dry weather in top global exporter Russia and other world wheat regions, traders said.

Wheat futures turned higher, rallying from early weakness tied to declines in world equity markets after US President Donald Trump tested positive for the coronavirus.

CBOT December soft red winter wheat settled up 3 cents at $5.73-1/2 per bushel.

For the week, the contract rose 29 cents a bushel or 5.3%, buoyed by the US Department of Agriculture's lower-than-expected estimates of US 2020 production and Sept. 1 stocks, released on Wednesday.

K.C. December hard red winter wheat closed on Friday up 3 cents at $5.09-1/2 a bushel while MGEX December spring wheat fell 1-3/4 cents to settle at $5.31-3/4.

Northern portions of Russia's wheat belt should see rains next week but the rest of the area should remain dry for the next two weeks with "poor growth conditions," the Commodity Weather Group said in a client note.

Russia could provide details in the middle of this month on a possible grain export quota for the first half of next year, agriculture consultancy Sovecon said in a note.

Rising domestic prices for wheat, sunflower oil and sugar will lead to higher bread prices in Ukraine, Interfax Ukraine news reported, citing the Ukrainian bakers association.