Wheat futures and commodity-related ETF were one of the few areas of the market that strengthened on Friday as value traders looked to pick up a potentially oversold category.
The Teucrium Wheat Fund (NYSEArca: WEAT) increased 2.8% Friday after declining 4.6% over the past week. Meanwhile, CBOT wheat futures were 3.3% higher to $5.035 per bushel, trading back above the key $5 level.
Wheat futures traded below $5 a bushel on Wednesday for the first time in almost six weeks amid technical selling and concerns over falling U.S. export demand, according to Business Recorder.
The USDA revealed inventories in the 2018-2019 year that started June 1 will be the second-highest on record, Successful Farming reports. The International Grains Council also raised its projections for global wheat production.
The stronger U.S. dollar also pressured overseas demand for USD-denominated commodities.