Markets

CBOT wheat rises on technical buying, posts big weekly gain

Published October 14, 2016 Updated October 14, 2016 06:31pm

1 min

By Shoaib Ur Rehman

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CHICAGO: Chicago Board of Trade soft red winter wheat futures rose 1.1 percent on Friday on a round of follow-through technical buying and short-covering after closing above key resistance points on Thursday.

Traders said that hopes that US wheat exporters may win more business in the coming weeks added strength to the market.

K.C. hard red winter wheat futures also rose but MGEX spring wheat futures fell on a profit-taking setback.

The most actively traded CBOT soft red winter wheat contract hit its highest since Aug. 25.

For the week CBOT wheat gained 6.5 percent, its biggest one-week rally since June 2015. MGEX spring wheat rose 1.1 percent during the week, its fourth straight weekly gain, and K.C. hard red wheat rose 4.0 percent.

The US Agriculture Department said on Friday morning weekly export sales of wheat for the 2016/17 crop year totaled 491,000 tonnes, in line with trade expectations.

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