Chicago Board of Trade wheat futures neared a three-week high on Monday, buoyed by spillover strength from corn and soyabeans, and a setback in the US dollar index, traders said. A softer dollar makes US wheat more attractive to those holding other currencies. The dollar’s retreat may have promoted some traders to exit long dollar/short commodity spreads.
CBOT September reached $5.30 a bushel, its highest since July 21, before paring gains to settle up 15 cents at $5.25-1/2 a bushel. The contract broke through chart resistance at its 100-day moving average near $5.21. K.C. hard red winter and MGEX spring wheat futures followed CBOT wheat higher.
Analysts expect the US Department of Agriculture to raise its forecasts for US 2015/16 wheat production and ending stocks in its monthly reports on Wednesday. However, the trade expects USDA to lower its forecasts of US production and ending stocks for both corn and soyabeans. Paris wheat futures set a two-week high, led by concern about the French corn crop.