Mumbai, 18 Jan (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures closed slightly higher on Friday, supported by strong gains in corn and soybeans. Traders attributed the rise to concerns over adverse crop weather in Argentina and renewed optimism about U.S.-China trade relations.
The March soft red winter wheat contract at CBOT ended 1-1/4 cents higher at $5.38-3/4 per bushel, marking a weekly gain of 8 cents or 1.5%. Similarly, K.C. March hard red winter wheat edged up 1/4 cent to $5.48-1/2 per bushel, while Minneapolis March spring wheat rose by 2 cents to close at $5.83-1/2 per bushel.
Despite these gains, the market continued to face pressure from sluggish global wheat exports. A strong U.S. dollar, which remains a challenge for American wheat in the face of cheaper Black Sea and Argentine supplies, limited the upward momentum. Although the dollar eased slightly from recent two-year highs this week, it still posed a competitive disadvantage for U.S. exports.
In Europe, Euronext wheat futures posted modest gains, influenced by the strength in CBOT grains and soybeans. This provided some recovery after the market had fallen to a six-week low due to weak export demand.
Weather remained a key focus for traders, with forecasts indicating the arrival of severe cold across the U.S. Plains and Midwest over the weekend. The frigid conditions raised concerns about potential damage to dormant winter wheat, particularly in areas lacking sufficient snow cover for protection.
U.S. markets and government offices will remain closed on Monday in observance of the Martin Luther King Jr. holiday, coinciding with the inauguration of President-elect Donald Trump. This closure may temporarily pause market activity as traders monitor global developments.
(By Commoditiescontrol Bureau: 09820130172)