CBOT wheat rallies to 1-year high as US-Iran tensions ignite short covering

CHICAGO, Feb 27 (Reuters) - Chicago Board of Trade wheat futures jumped to a one-year peak on Friday as concerns about U.S.-Iran tensions triggered short covering by funds that held a large net short position in the market, traders said.

• Technical buying accelerated gains as futures topped multi-month highs posted at the beginning of the week.

• Commodities markets have been unsettled as investors fret about inconclusive talks on Thursday between Washington and Tehran, despite mediator Oman's talk of progress.

• Rain and mild weather in the U.S. Plains farm belt have eased concerns about U.S. winter wheat crop conditions.

• Ratings of French soft wheat crops showed 84% were in good or excellent condition by February 23, down from 88% a week earlier and up from 73% a year ago, farm office FranceAgriMer said on Friday.

• CBOT May soft red winter wheat WK26 ended 17 cents higher at $5.91-1/2 a bushel, after peaking at $5.97, the highest level for a most-active contract Wv1 since February 24, 2025. The contract was up 1.9% in the week, its third straight weekly gain.

• K.C. May hard red winter wheat KWK26 last traded 21-1/4 cents higher at $5.83-1/2 per bushel, and Minneapolis May spring wheat MWEK26 added 12-3/4 cents to close at $6.11-1/2 per bushel.