Wheat futures on the Chicago Board of Trade settled higher on Wednesday on short-covering and bargain buying after this week's 4-1/2-month low, traders said. CBOT wheat gained sharply against K.C. hard red winter and Minneapolis Grain Exchange spring wheat as traders exited inter-market spread positions.
K.C. wheat pressed by expectations that USDA might raise its estimate of US 2013/14 hard red winter wheat ending stocks in a monthly supply/demand report next week, given state figures released in its June stocks report. July K.C. wheat fell to $6.72-1/4 per bushel, the lowest spot price since February 28, before paring losses to settle at $6.83. Spot July MGEX spring wheat fell to $6.50, its lowest since February 10, before settling at $6.51-3/4.
Ample global wheat supplies, expectations of a large harvest across Europe and strong competition for export business hang over the market. CBOT reported 51 deliveries against July wheat futures and 54 deliveries of K.C. hard red winter wheat.
