CBOT wheat firms after weather-inspired surge, lowered USDA rating

Apr 23, 202418:58 UTC

Chicago Board of Trade wheat futures firmed on Tuesday and hit the highest point in more than two months on dry conditions in the U.S. Plains and Russia and as USDA crop data showed deterioration of the developing winter crop.

CBOT July wheat (WN24) settled up 15-1/4 cents at $6.02-3/4 per bushel, the highest since Feb. 12.
K.C. July hard red winter wheat (KWN24) last traded up 12-1/2 cents at $6.15 a bushel and MGEX July spring wheat (MWEN24) rose 9-1/2 cents to finish at $6.72-1/4 a bushel.
Concerns over dry weather in the U.S. Plains and southwest Russia supported prices.
Technical buying accelerated the rally as CBOT July (WN24) wheat broke through resistance at the 100-day moving average
Commodity funds also hold a hefty net short position in CBOT wheat futures, leaving the market vulnerable to bouts of short-covering.
The U.S. Department of Agriculture (USDA) lowered its winter crop condition ratings late Monday to 50% good to excellent, down from 55% last week, 4 percentage points short of the average estimate of analysts polled by Reuters.