Chicago Board of Trade wheat futures crept higher on Tuesday on technical trading and weather risks in China, traders said.
Traders said hot, dry weather in the major grain-growing province of Henan has raised concerns about wheat growth and led to short covering.
A diminished Chinese wheat crop could lead to increased Chinese demand for wheat imports.
However, rain in the Black Sea region and a boost to U.S. harvest prospects have continued to weigh on prices.
The U.S. Department of Agriculture's weekly crop progress report, released after Monday's close, showed 51% of U.S. winter wheat rated good to excellent, slightly ahead of the average analyst projection and the highest for this time of the year since 2020.
Drought conditions eased last week in portions of the U.S. winter wheat belt as showers crossed the southern Plains, with heavy rains in Oklahoma. As of April 29, some 23% of the U.S. winter wheat crop was located in an area experiencing drought, the USDA said last week, a drop from 33% the previous week.
CBOT July soft red winter wheat (WN25) closed 4-3/4 cents higher to $5.36 per bushel.
K.C. July hard red winter wheat (KWN25) ended 5-1/4 cents higher at $5.38 per bushel.
Minneapolis July spring wheat (MWEN25) ended 1 cent higher at $6.10-1/2 a bushel.
