In a positive sign, Friday CBOT wheat trading recorded its seventh price gain in the past eight trading days.

On Friday, in the first sale for 2009, March '09 wheat futures closed at $6.11/bus.

Wheat prices have now risen strongly since the start of December, by 8pc, claiming back some of the sharp falls in prices in 2008.

The March '09 contract peaked at $US13/bus in late February.

Then it fell sharply, bottoming out at the start of December below $5/bus.

Even with its December lift, Chicago wheat ended the year down 55pc from its February peak.

The December lift comes amid increasing reports that the acreage sown to the US winter wheat crop has dropped by 5pc.

US growers reportedly were discouraged by the falling wheat prices since March and therefore pulled back from seeding their full planned winter acreage.

Also, news agencies have been reporting a possible negative impact on the US winter wheat crop from the cold weather in the southern Great Plains in December.

Kansas CBT red winter wheat on Jan 1 was trading at $US6.21/bus.

March '09 futures prices for corn, the biggest US crop, held steady on Friday, consolidating an 11pc rebound during December, as it bounced back from the early December bottom of its market.

Even so, the CBOT March '09 corn contact is still down 48pc from its mid-year peaks.

Corn's rebound reflects, in part, expectations that the incoming Obama US Administration will encourage the further development of US ethanol output, with corn being the major feedstock for ethanol in the US.