Wheat futures on the Chicago Board of Trade closed higher on Friday for a fourth straight session, rallying on technical buying after contract lows set this week. K.C. hard red winter and MGEX spring wheat futures also ended higher. Stabilizing global equity markets added support, easing macroeconomic fears that pressured most commodities this week.
Some traders may be liquidating short positions in CBOT wheat ahead of several USDA supply/demand reports scheduled for release on January 12, including quarterly US grain stocks and US winter wheat plantings. The fundamental outlook for heat remains mostly bearish, with plentiful global grain stocks and poor export demand for US supplies. CBOT March wheat dipped to $4.56 a bushel this week before rallying, the lowest price since June 2010 on a continuous chart of the most-active wheat contract.
A storm is forecast to bring 2 to 4 inches (5 to 10 cm) of snow to the US Midwest this weekend, helping to insulate the region's soft red winter wheat crop from a cold spell early next week, a Commodity Weather Group forecaster said. For the week, CBOT March wheat rose 1.6 percent, its second straight weekly advance.