Chicago Board of Trade (CBOT) wheat futures rose for a third time in four sessions on Friday on technical buying and as a weak US dollar and rising wheat prices in rival exporting countries boosted US export prospects, traders said.
CBOT March soft red winter wheat settled up 5-3/4 cents at $5.19-1/2 per bushel. The contract held chart support at its 10-day moving average and broke through chart resistance at its 20-, 30-, 40- and 50-day moving averages. Benchmark March wheat rose 0.5 percent in the week, its second straight weekly advance. K.C. March hard red winter wheat ended up 5-3/4 cents at $5.04-1/2 a bushel while MGEX March spring wheat rose 6 cents to $5.70 a bushel.
Expectations that thinning supplies in Russia would raise export opportunities for US wheat supported prices. The US dollar notched a three-month low against a basket of currencies this week. A weaker greenback makes dollar-denominated commodities more attractive for those holding other currencies. Traders are watching for any wheat demand from China following promises by Beijing to purchase "a significant amount" of US agricultural goods and other products. The US Department of Agriculture would have normally published a fresh crop forecast on Friday but updates have been postponed indefinitely due to the government shutdown.
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