Wheat futures on the Chicago Board of Trade rose on Thursday for the first time in seven sessions and bounced back from multiyear lows as a tumble in the US dollar lifted grains and other commodities such as gold and crude oil, traders said. K.C. hard red winter wheat and MGEX spring wheat futures also closed higher.
The dollar fell 2 percent for its steepest one-day decline in more than six years as the euro surged on the European Central Bank's smaller-than-expected cut in interest rates on deposits. Funds hold a large net short position in CBOT and K.C. wheat futures, leaving the market vulnerable to bouts of short-covering. CBOT and K.C. wheat bounced back from contract lows set in all months one day earlier. Also, the spot CBOT wheat contract on Wednesday fell to its lowest level since June 2010.
USDA reported weekly export sales of US 2015/16 wheat at 392,200 tonnes, in line with trade expectations for 250,000 to 500,000 tonnes. Russia has no plans to restrict grain exports to Turkey, Russia's RIA news agency cited Deputy Agriculture Minister Evgeny Gromyko as saying. CBOT reported 299 December soft red wheat deliveries and 86 deliveries of K.C. hard red winter wheat. MGEX reported one spring wheat delivery.