CHICAGO: Wheat futures were expected to open 10 to 12 cents higher at the Chicago Board of Trade on Friday, supported by strength in the corn market as well as concerns about weather hurting world production.
The corn market was buoyed by the US Agriculture Department's announcement of a sale of 1.25 million tonnes of US corn to an unknown destination, which traders were viewing as confirmation of a long-rumored deal with China.
Dry weather continued to stress the developing hard red winter wheat crop in the western and southern US Plains and there was no relief in sight from the dryness. Forecasts for rain were limited to eastern and northern portions of the Plains.
European milling wheat futures rose as much as 3 percent on Friday, driven by concerns about dry crop weather and tension on the cash market in France. Dry conditions in France were continuing to cause concern and add to global crop uncertainty.
Traders also watching planting conditions in Ukraine and Russia, where farmers will soon begin sowing their wheat following a massive crop failure in 2010.
The benchmark CBOT May contract was facing a key resistance point at the 200-day moving average of $7.42-1/2 a bushel. Next technical resistance point is the 20-day moving average of $7.54 a bushel.
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