January 26, 2007

 

US Wheat Outlook on Friday: Mixed on lack of fresh inputs

 

 

U.S. wheat futures are expected to begin Friday's day session trading mixed as the absence of fresh news and a quiet overnight session are expected to limit price volatility, sources said.

 

In overnight electronic trading, CBOT March wheat gained 3/4 cent to US$4.69 1/2, while March KCBT hard red wheat fell 1 1/2 cents to US$4.92 1/2.

 

It should be a quiet session, a floor analyst said. Trading overnight was flat, the outside markets are mixed and there was no fresh news to trade off of, he added.

 

The market could see some additional position squaring ahead of the weekend but there is no reason to push wheat either way, he noted.

 

Price direction in wheat remains at the mercy of corn, a floor trader said. If corn moves higher, wheat will draw support from it as well but trading should be choppy and two-sided, the trader said.

 

On daily technical charts, CBOT March wheat remains in a two-week old sideways trading range, a market technician said.

 

First resistance is seen at US$4.71 1/2, Thursday's high and then at US$4.74. First support is seen at Thursday's low of US$4.61 and then at US$4.60.

 

March KCBT wheat closed near the session high Thursday and scored a mildly "bullish" outside day on the daily bar chart, the technician said.

 

First resistance for KCBT March is seen at US$4.95 and then at US$5.00. First support is pegged at US$4.90 and then at US$4.85.

 

In the U.S. soft red wheat belt there is a chance for snow showers during the weekend mainly in the north and eastern sections of the region, DTN Meteorologix Weather said. Dry conditions with only a few scattered snow showers are possible Monday or Tuesday. Temperatures are expected to average above normal Saturday and below normal Sunday through Tuesday.

 

In the U.S. hard red winter wheat belt, there is a chance for light precipitation or snow flurries Saturday with mainly dry conditions Sunday through Tuesday, DTN Meteorologix Weather said. Temperatures are expected to average near to below normal from Saturday through Tuesday.

 

In other wheat news, the Commodity Futures Trading Commission is scheduled to release the weekly commitment of traders report for the period ending Jan. 23.

 

On Monday, the U.S. Department of Agriculture is scheduled to release the weekly export inspections report at 11:00 EST (1700 GMT).