CHICAGO: Chicago Board of Trade wheat futures closed higher on Tuesday as European wheat futures climbed on concern about tightening global supplies, traders said.
CBOT September soft red winter wheat futures settled up 15-3/4 cents at $7.27 per bushel.
K.C. September hard red winter wheat ended up 12-3/4 cents at $7.14-1/4 a bushel while MGEX September spring wheat rose 6-3/4 cents to settle at $9.15-1/2.
Euro next wheat futures rose to contract highs as rain affected the milling quality of the French harvest while rising prices in top exporter Russia stoked concerns about global supplies.
CME December Black Sea wheat futures settled up $6, or 2.6%, at $302 per tonne.
Ahead of Thursday’s monthly supply/demand reports from the U.S. Department of Agriculture, analysts surveyed by Reuters on average expect the government to lower its forecasts of 2021/22 U.S. and global wheat ending stocks.
Analysts also expect the USDA to trim its estimates of U.S. 2021/22 all-wheat and spring wheat production.
The USDA in a weekly crop report late Monday rated 11% of the drought-hit U.S. spring wheat crop as good to excellent, up from 10% the previous week, while analysts on average had expected no change.
The USDA said the spring wheat harvest was 38% complete, up from 17% the previous week and well ahead of the five-year average of 21%, while the winter wheat harvest was 95% complete.
A firmer dollar hung over the market, in theory making U.S. grains less competitive globally.
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