Wheat futures rise as the deteriorating condition of US spring wheat prompts traders to reduce short positions.

Wheat futures rose on Tuesday, as deteriorating crop conditions in the United States prompted traders to reduce some of their bearish bets. The wheat futures contract for delivery in September on the Chicago Mercantile Exchange rose by as much as 1.9% to $5.5275 per bushel. The deteriorating condition of spring wheat in the United States led traders to liquidate some of their short positions in the week ending on July 20. Wheat prices broke above the 10-day, 20-day, and 30-day moving averages, which is a technical signal that usually encourages buying. However, due to expectations of increased global supply this season, the upside remains limited. Harvesting of winter wheat in major producing countries such as the United States, France, and Russia is progressing smoothly. At the same time, good crop conditions in Argentina and Australia are helping to suppress price increases.