March 3, 2006

 

US Wheat Review on Thursday: Up on speculative buying, soy rally

 

 

U.S. wheat futures ended higher Thursday after local and speculative buying, following gains in speculative-led double-digit gains in Chicago Board of Trade soybeans, brokers said.

 

CBOT soft red winter wheat ended 6 1/2 cents higher at US$3.80 1/2 after rallying through its 20- and 10-day moving averages.

 

In CBOT wheat pit trades, Iowa Grain bought 600 May, ABN Amro bought 500 May, Fimat Futures bought 300 May and the commercial arm of JP Morgan and O'Connor and Co. each sold 400 May, brokers said.

 

In Thursday's delivery news, CBOT wheat deliveries totaled 212. The major issuer was Man Financial at 116 and the biggest stoppers were ABN Amro stopping 71, Man Financial stopping 57 and USA Trading stopping 45.

 

Minneapolis Grain Exchange spring wheat deliveries totaled 23 Thursday. They were issued by UBS Securities, LLC and received by ADM Investor Services.

 

Thursday's U.S. wheat futures rally bucked bearish U.S. wheat export sales data, futures traders noted.

 

The U.S. Department of Agriculture reported weekly U.S. wheat export sales of 159,000 metric tonnes, below estimates for 300,000 to 500,000 tonnes.

 

The sales were a marketing-year low at 69% below the previous week and 65% under the prior 4-week average. The biggest buyer was Guatemala at 38,000 tonnes.

 

The European Union grain management committee Thursday rejected for the third consecutive week all bids for wheat and barley export licenses in its subsidized free-market tenders, E.U. figures show.

 

The EU granted licenses to export 264,407 metric tonnes of wheat from intervention stores Thursday. The intervention wheat licenses included 138,176 tonnes for France at EUR109.01/tonne and 126,231 tonnes for Germany at EUR111.87/tonne. Wheat intervention bids for Hungary, Poland and Czech Republic were rejected.

 

In its weekly tender, Japan bought 167,000 metric tonnes of wheat, for a May shipment. There were no details on the grades of wheat sought. The U.S. won 85,000 tonnes, while Canada and Australia each garnered 41,000 tonnes.

 

 

Kansas City Board of Trade

 

KCBT May wheat ended 5 cents higher at US$4.39 3/4.

 

In pit trades, Benson Quinn bought 300 December and sold a net 400 July, Refco Inc. bought 200 July and 100 May and Man Financial sold 300 May and 100 July, brokers said. FC Stonnee sold 100 July and 200 December, they noted.

 

Kansas City spot cash railcar basis bids for 12% wheat rose 1 cent Thursday day while midday HRW Gulf spot basis bids were unchanged, cash sources said.

 

KCBT gains on Thursday were tempered by forecasts for the chance for light rains from west and north Texas to southern Oklahoma Thursday and Friday. During the weekend there is a chance for sprinkles and light showers, through central and east areas. Temperatures are seen above normal but not as hot as it has been the past two days.

 

DTN Meteorlogix's six- to 10-day outlook called for temperatures to average near to above normal with precipitation near to above normal through central and east locations, near to below normal west.

 

 

Minneapolis Grain Exchange

 

MGE May wheat closed up 9 1/2 cents at US$4.25 1/2 after rallying through its 20- and 10-day moving averages.

 

Cash U.S. spring wheat basis bids were mixed on Thursday with the best demand from low vomitoxin cars in the western region, cash sources said.

 

Minneapolis rail receipts of wheat on Thursday totaled 245 cars versus last year's 106 cars. Durum receipts totaled 57 cars versus last year's 27 cars.