US wheat futures rally on short-covering, excessive US rains

CHICAGO: US wheat futures rallied more than 3% on Monday on short-covering and as overly wet weather in the central United States fueled worries about winter wheat crop damage and late spring crop planting, traders said.

* Chicago Board of Trade July soft red winter wheat settled up 13-1/4 cents at $4.78-1/4 per bushel, the highest close in three months. The contract encountered chart resistance at its 100-day moving average.

* K.C. July hard red winter wheat ended up 14-1/4 cents at $4.34-1/2 a bushel, while MGEX July spring wheat ended up 15-3/4 cents at $5.43-1/2 a bushel.

* Excessive rains across the US Plains and Midwest have threatened to damage developing winter wheat fields and have stalled planting of the spring crop.

* Analysts polled by Reuters expect, on average, for US spring wheat to be 63% planted as of Sunday, behind the five-year average of 80%. The US Department of Agriculture (USDA) is scheduled to publish its weekly crop progress report at 3 p.m. CDT (2000 GMT).

* The USDA is also expected to lower its winter crop condition rating to 63% good-to-excellent, from 64% a week earlier.

* Showers forecast over the next week could keep farmers sidelined into June.

* Commodity funds hold a large net short position in wheat futures, leaving the markets susceptible to waves of short-covering.

* Wheat drew some support from easing trade tensions between the United States and Mexico and Canada.