Chicago Board of Trade wheat futures rose on Friday for a third straight session, following as corn and soybean futures climbed on a drop in the dollar, which tends to make US grains more competitive globally, traders said.
CBOT December soft red winter wheat WZ3 settled up 7 cents at $5.72-1/2 per bushel.
However, the December contract finished the week down 3 cents a bushel or 0.5%, its second straight weekly decline.
KC December hard red winter wheat KWZ3 closed Friday up 2 cents at $6.43-1/2 a bushel and MGEX December spring wheat MWEZ3 rose 10-1/4 cents to settle at $7.21 a bushel.
Wheat, corn and soy futures climbed after data showed US job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. The dollar index .DXY hit a six-week low on the news. USD/
Commodity funds hold a sizable net short position in CBOT wheat futures, leaving the market prone to bouts of short-covering.
The Buenos Aires grains exchange on Thursday cut its forecast for this year’s wheat crop in Argentina by 5% to 15.4 million tons, from 16.2 million tons previously, citing frosts and drought.
Source: Reuters (Reporting by Julie Ingwersen; Editing by David Gregorio)