US Wheat Review on Friday: Finishes mostly lower Friday; Minneapolis Grain Exchange rises

 

 

U.S. wheat futures closed mostly lower Friday in a setback from gains and amid pressure from outside influences, but the markets ended little-changed for the week.

 

Chicago Board of Trade March wheat closed down 2 1/2 cents, or 0.5%, at US$4.73 1/4 a bushel. That was down just 3/4 cent for the week.

 

Kansas City Board of Trade March wheat fell 4 cents, or 0.8%, to US$4.84 1/2. Minneapolis Grain Exchange March wheat rose 3/4 cent, or 0.1%, to US$5.02 1/2.

 

CBOT wheat pulled back after rising Thursday in a technical bounce. CBOT March wheat in electronic trading Friday hit a session low of US$4.67 but pared losses before the close.

 

Trading was choppy and slow, with market participants reluctant to press the market too hard in either direction ahead of the weekend or before the U.S. Department of Agriculture issues crop data Tuesday, a broker said. The markets seem to have found a value area after tumbling in January, an analyst said.

 

Strength in the U.S. dollar was a bearish influence, as it makes U.S. grains less attractive to foreign buyers, the broker said. The Dollar Index, which represents the greenback against a basket of other currencies, jumped on worries of fiscal instability outside the U.S.

 

Commodity funds sold an estimated 4,000 wheat contracts at CBOT.

 

 

Kansas City Board of Trade

 

KCBT March wheat finished down 2 1/2 cents on the week. The contract finished above its session low of US$4.80 1/4.

 

Traders are looking ahead to Tuesday's USDA supply and demand report amid expectations they will be "hard pressed to find a bullish surprise," said Jason Britt, president of Central State Commodities. The report is expected to confirm that U.S. carryout is large.

 

 

Minneapolis Grain Exchange

 

MGE March wheat closed up 1 3/4 cents on the week. The contract closed near its session high of US$5.04 1/4 and above its session low of US$4.97.

 

MGE March wheat has rebuilt its typical premium over CBOT March wheat after trading just 5 1/2 cents above CBOT Jan. 11. The spread closed Friday at 29 1/4 cents, premium MGE.