Chicago Board of Trade wheat futures closed modestly higher Friday on technical buying, including short-covering, as the most-active March contract posted its first weekly rise in seven weeks, traders said. CBOT wheat was seen as oversold and due for a bounce after falling nearly 15 percent during January. Concerns about geopolitical tension in Ukraine added background support, raising concern about potential disruptions to new-crop Black Sea grain exports.
K.C. hard red winter and MGEX spring wheat drifted lower for the session, but posted weekly gains. A stronger dollar, which makes US wheat less attractive to those holding other currencies, hung over the market, limiting rallies. Traders adjusting positions ahead of USDA's monthly supply/demand report on Tuesday. Analysts expect little change in the government's US and world wheat ending stocks forecasts.
Russia could harvest 85-95 million tonnes of grains this year, the head of the IKAR agriculture consultancy said, describing the forecast as moderately optimistic. For the week, CBOT March wheat rise 24-1/4 cents per bushel or 4.8 percent. K.C. March wheat rose 21-1/2 cents or 4.0 percent. MGEX March spring wheat rose 20-1/4 cents or 3.6 percent.