CHICAGO (Dow Jones)--U.S. wheat futures finished stronger Friday on worries farmers in the spring may replant poor-looking wheat acres with more profitable crops.
Soft red winter wheat for March delivery rose 7 cents, or 0.9%, to $7.56 3/4
a bushel at the Chicago Board of Trade. The contract ended down 18 3/4 cents, or 2.4%, on the week.
Futures prices rose Friday as the market tried to convince farmers to keep
wheat in the ground if it emerges from the winter looking ragged due to
dryness, analysts said. Farmers could plow up the wheat to replant with
soybeans, corn or cotton, which are trading at lofty levels.
Private analytical firm Informa Economics, a closely watched agricultural
forecaster, on Friday projected wheat for harvest in 2011 will be planted on
56.1 million acres, up from 53.6 million acres planted for harvest in 2010.
Market participants had expected farmers to sow more than that, analysts said.
"I thought the acres would be higher," said Sid Love, analyst for Kropf &
Love Consulting.
Worries about poor weather reducing world wheat supplies pushed wheat futures to 18-week highs Wednesday before the markets ended lower Wednesday and Thursday. Importers have been nervous about supply threats since Russia this summer banned grain exports due to a historic drought, pushing wheat futures near two-year highs.
Kansas City Board of Trade
Hard red winter wheat for March delivery ended up 8 1/2 cents, or 1.1%, to
$8.11 3/4 a bushel at the Kansas City Board of Trade. The contract closed down 20 1/4 cents, or 2.4%, on the week.
Futures came under pressure earlier in the week as weather turned drier in Australia, typically a major exporter, analysts said. Heavy rains had slowed the harvest in eastern areas and reduced the quality of the crop, shifting demand for hard red wheat to the U.S.
Minneapolis Grain Exchange
Hard red spring wheat for March delivery jumped 6 3/4 cents, or 0.8%, to
$8.42 a bushel at the Minneapolis Grain Exchange. The contract closed down 27 1/2 cents, or 3.2%, on the week.
Trading is expected to be choppy next week ahead of the Christmas holiday. The CBOT, KCBT and MGE are closed Friday for Christmas Eve.
Rice futures
U.S. rice futures closed lower for the second day Friday in light volume.
Market participants were rolling positions to the March contract from the
nearby January contract, a floor trader said.
Rice for January delivery ended down 5 cents, or 0.4%, at $13.69 1/2 per
hundredweight. The contract finished down 23 cents, or 1.7%, on the week.
