US Wheat Review on Friday: Closes firmer Friday, ends up for the week

 

 

U.S. wheat futures finished higher Friday on suspected short-covering and technical buying, analysts said, and ended up a few cents on the week.

 

Chicago Board of Trade March wheat rose 4 3/4 cents, or 1%, to US$4.89 3/4 a bushel, up 3 1/4 cents on the week. Kansas City Board of Trade March wheat rose 4 3/4 cents, or 1%, to US$4.98 1/4. Minneapolis Grain Exchange March wheat rose 5 3/4 cents, or 1.1%, to US$5.08 1/2.

 

The markets recovered a bit after sliding Wednesday and Thursday. Commodity funds bought an estimated 3,000 contracts at CBOT.

 

Support for CBOT March wheat lies at US$4.80 and then US$4.74 and US$4.60, according to a market comment from PFG Best. The contract needs to close above 5.04 to turn charts bullish and confirm a seasonal low, the firm said. If it hits the 4.60 area or closes above US$5.04, the firm advised, traders should buy July futures.

  

 

Kansas City Board of Trade

 

KCBT March wheat ended up 3 3/4 cents on the week

 

Weekly U.S. wheat export sales of 463,400 tonnes were seen as solid, but the U.S. still faces stiff competition for export business from Europe and the Black Sea region, traders said. Egypt, a price-conscious buyer, on Thursday booked 300,000 tonnes of Russian and French wheat in a tender and snubbed the U.S., which is seen as overpriced.  

 

 

Minneapolis Grain Exchange

 

MGE March wheat finished up 4 cents on the week.

 

The U.S. Department of Agriculture issued 2010-11 U.S. crop estimates at its annual Agricultural Outlook Forum but there was "nothing that stands out bullishly" for wheat, said John Kleist, a broker and analyst at Allendale. Large carryout compensates for a projected decline in acreage, he said.

 

The government estimated 2010-11 production at 1.945 billion bushels, with planted area estimated at 53.8 million acres. In 2009-10, planted area was 59.1 million acres and production was 2.216 billion bushels.