CBOT wheat ends mostly higher, consolidating after multi-month lows

- Chicago Board of Trade wheat futures closed mostly higher on Tuesday, consolidating after a drop to multi-month lows this week while a softer dollar lent support, traders said.

  • CBOT July soft red winter wheat WN26 settled up 2 cents at $5.85-1/4 per bushel, its second daily advance after a six-session slide.

  • K.C. July hard red winter wheat KWN26 ended up 1 cent at $6.30-3/4 a bushel while Minneapolis July spring wheat MWEN26 fell 2 cents to close at $6.17-1/2 a bushel.

  • A drop in weekly U.S. winter wheat ratings lent support to the CBOT and K.C. winter wheat markets.

  • The U.S. Department of Agriculture on Monday rated 25% of the winter wheat crop as good to excellent, down 1 percentage point from last week and the lowest for this time of year in USDA records dating to 1986.

  • Ratings fell in Kansas and Oklahoma, where harvesting is under way. "Sharply lower ratings in Oklahoma during active harvest suggest that yields are below already-low expectations," StoneX chief commodities economist Arlan Suderman wrote in a client note.

  • However, U.S. spring wheat ratings improved, with the USDA rating 52% of the crop as good to excellent, up from 47% the prior week.

  • Traders awaited direction from a monthly supply and demand report due from the USDA on Thursday, including updated estimates of U.S. winter wheat production.