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CBOT wheat closes higher as Plains weather rules

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed higher Wednesday on persistent concerns about dry weather in the US Great Plains hard red winter wheat region, traders said. CBOT wheat closed 1/2 to 2 cents higher, with March up 1-1/2 at $2.66.

Meterologists have said the crop could suffer as it emerges from winter dormancy after a lack of substantial moisture since fall seeding.

Little change in the dry pattern was likely this week in the central and southern Plains, forecasters said, although there was a chance of light rain and snow Friday. "Crops are mostly dormant but may suffer come springtime due to below normal soil moisture," Weather Services Corp. said Wednesday. "There is a lack of protective snow cover in the region, however no damaging cold is in sight at this time." But while the US wheat stocks outlook was smaller than previously thought and dry weather could further trim supplies, export demand remained lackluster, traders said. The Philippines set a tender on Wednesday for 35,000 tonnes of US wheat, but large volume export business was lacking. Funds bought 500 lots. Cargill Inc. and Carr Futures each bought 400 March contracts and Prudential Securities sold 100 each in March, May and July, floor sources said.

Wheat futures volume was estimated by the CBOT at 16,000 lots, below the 18,621 lots traded Tuesday.

Wheat options volume was estimated at 10,000 lots.-Reuters