CBOT wheat ends modestly higher on short covering; Russian duties eyed
CHICAGO, Sept 15 (Reuters) - Chicago Board of Trade wheat futures closed modestly higher on Monday on short covering and news that top global exporter Russia plans to raise its wheat export duty, traders said.
CBOT December soft red winter wheat WZ25 settled up 1-1/2 cents at $5.25 per bushel.
K.C. December hard red winter wheat KWZ25 ended down 3/4 cent at $5.14 a bushel and Minneapolis December spring wheat MWEZ25 finished unchanged $5.71-3/4 a bushel.
Russia will increase its wheat export duty almost threefold starting on September 17, the Agriculture Ministry said on Friday.
However, Russian wheat export prices declined last week as the rouble weakened, leading agricultural consultancies said.
Commodity funds hold a sizable net short position in CBOT wheat futures, leaving the market open to bouts of short covering.
Strong weekly export inspections data lent support. The USDA reported export inspections of U.S. wheat in the latest week at 755,073 metric tons, topping a range of trade expectations for 300,000 to 600,000 tons. USDA/I
Ahead of the U.S. Department of Agriculture's weekly crop progress report due later on Monday, analysts surveyed by Reuters on average expected the government to report the U.S. spring wheat harvest as 92% complete and winter wheat planting as 14% complete.
Up to 60% of Ukrainian agricultural land intended for sowing winter grain crops is dry and sowing in these areas is currently impractical, consultancy APK-Inform said, citing state meteorologists.
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