Wheat futures on the Chicago Board of Trade closed higher on Friday on short-covering and worries about dry conditions in the southern US Plains and the Southeast, traders said. CBOT December wheat settled up 5 cents at $4.08 per bushel after reaching $4.10, its highest point since November 10. For the week, the contract also rose 5 cents, or 1.2 percent.
K.C. December hard red winter wheat settled Friday up 5 cents at $4.13-3/4 a bushel and MGEX December spring wheat ended up 2-1/2 cents at $5.29-1/4. Drought expanded last week in much of the US Southeast and Plains states including Oklahoma, Kansas and Colorado, according to the latest weekly US Drought Monitor report, produced by a consortium of climatologists.
Updated 90-day weather outlooks released on Thursday by the US Climate Prediction Center showed drought persisting in those regions through February. Traders still digesting news that private analytics firm Informa Economics on Thursday lowered its estimate of US wheat plantings for harvest in 2017. Russia does not plan to return to a wheat export tax, Deputy Prime Minister Arkady Dvorkovich told a conference.
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