February 24, 2005

US wheat mostly stronger on CBOT

Speculative buying underpinned further gains in U.S. wheat futures again after rallying the market in Tuesday's session of record volume, traders said.

At the CBOT, the commodity funds were figured to be buyers of about 11,000 contracts in the wheat pit in more short covering, floor sources said. Coming into the session, the funds were figured to be net short about 20,000 contracts in wheat futures and options. Some other market participants linked the speculative buying activity to seasonal trends.

"This is the time frame the 'voice from the tomb' says buy wheat," said John Kleist, grain analyst with Kleist Consulting in Arlington Heights, Ill. CBOT May wheat ended 3 3/4 cents higher at US$3.24 1/2 a bushel, KCBT May wheat settled 2 1/2 cents higher at US$3.43, and MGE May wheat finished 4 3/4 cents higher at US$3.42 1/4.