US Wheat Review on Friday: Closes slightly up on light, late buying

 

 

Light buying in thin volume kicked U.S. wheat futures slightly higher late Friday as traders returned to kick off the new year.

 

Chicago Board of Trade March wheat edged up 1/4 cent to US$6.11 a bushel. Kansas City Board of Trade March wheat rose 3 1/2 cents to US$6.33 1/2, and Minneapolis Grain Exchange March wheat jumped 1/2 cent to US$6.55 1/4.

 

The technical trend in the markets remains higher as prices have climbed steadily since Dec. 5, a trader said. The upside is "just kind of the way she wants to go," he said.

 

"I just think overall we're kind of in that trend to go higher," the trader said.

 

Profit-taking had weighed on the markets earlier in the session, traders said. CBOT March wheat finished December up nearly US$1.40 from its Dec. 5 low of US$4.71, which was the low for the month.

 

More technical buying and fund interest will be needed to extend the rally, an analyst said. Wheat will also keep an eye on CBOT corn and soybeans for direction, a trader said.

 

"I think we're going to have a lot of help from some continued good technicals and from some fund buying," the analyst said.

 

Volume was light as some traders and brokers stayed home following the New Year's Day holiday Thursday and ahead of the weekend.

 

"We're into the new year, but it's still this holiday-type trading," the analyst said. "We're not going to see things going back to normal until at least next week."

 

 

Kansas City Board of Trade

 

KCBT wheat led the upside. There was "a little light buying" ahead of the close, a KCBT floor trader said.

 

The activity resembled a late rally Wednesday, although "it didn't seem like it was quite as aggressive," the floor trader said. There was "another little blip of light buying and not a lot of sellers," he said.

 

KCBT March wheat finished near its session high of US$6.34. The contract's session low was US$6.15.

 

 

Minneapolis Grain Exchange

 

MGE wheat closed slightly higher with the other markets. Weekly U.S. wheat export sales were solid, although it is too soon to say that demand is improving, traders said.

 

Export sales of 418,100 tonnes for the week ended Dec. 25 exceeded trade expectations of 100,000 to 200,000 tonnes. Sales were up 65% from the previous week and 74% from the prior four-week average, according to the U.S. Department of Agriculture.

 

"They were better today," said Dale Durchholz, analyst for AgriVisor. "If we would continue to see these perform just a little bit better, then you would have to step back and say something seems to be going on here that maybe I need to take note of."

 

Sales of 165,000 tonnes of white wheat accounted for the biggest portion by class, according to the USDA. Sales of hard red spring wheat, traded at the MGE, were 68,600 tonnes.