US Wheat Review on Tuesday: Consolidates, finishes near unchanged

 

 

U.S. wheat futures closed mixed and near unchanged Tuesday as the markets consolidated amid modest movements in neighboring markets.

 

Chicago Board of Trade May wheat ended unchanged at US$5.04 1/2 a bushel. Kansas City Board of Trade May wheat lost 1 3/4 cents, or 0.3%, to US$5.08 1/2. Minneapolis Grain Exchange May wheat rose 1/2 cent, or 0.1%, to US$5.17 1/4.

 

Wheat stabilized after sinking Monday, traders said. The markets have see-sawed between positive and negative closes for the past week.

 

CBOT May wheat is holding above a support level at US$5, which is near its 20-day moving average of US$5.04, an analyst said. The contract closed in the middle of Tuesday's range of US$5.09 3/4 to US$4.98 1/4.

 

In neighboring markets, corn ended slightly weaker and soy finished slightly higher. Wheat has been keeping an eye on other markets for direction lately amid a lack of fresh news.

 

There was "just nothing as far as any news that could drive this market," an analyst said. Export business is "routine," he said.

 

 

Kansas City Board of Trade

 

KCBT wheat extended Monday's losses a bit in choppy, quiet activity, traders said. The market did not have strong direction or much news to trade on, they said.

 

Hard red winter wheat in Kansas deteriorated slightly during February, the National Agricultural Statistics Service said in a crop progress report. It rated the state's wheat as 53% good to excellent at the end of February, down from 56% a month earlier.

 

Four percent of winter wheat is breaking dormancy, primarily in southwest and south central areas, NASS said. Wheat goes dormant during the winter to protect itself from the cold and starts growing again as the weather warms.

 

 

Minneapolis Grain Exchange

 

MGE wheat bounced a bit from losses Monday in light volume, although the fundamental storyline remains unsupportive. Wheat supplies are large, and there is stiff competition for export business.

 

Japan said it was seeking 132,000 tonnes of wheat, including 65,000 tonnes from the U.S., in a regular tender to be concluded Thursday for shipment April 16 to May 20. Japan is a traditional buyer of U.S. wheat and its demand is seen as inelastic.