US Wheat Review on Monday: Mixed on profit-taking, exports

 

 

Chicago Board of Trade May wheat lost 3 3/4 cents to US$5.23 1/4 per bushel. The most actively traded contract traded a 15-cent range, topping at US$5.36. Kansas City Board of Trade May wheat gained 3/4 cent to US$5.74 3/4. Minneapolis Grain Exchange May wheat dropped 2 cents to US$6.11, while March wheat maintained its premium, closing up 3/4 cents at US$6.31 3/4.

 

Speculative funds sold an estimated 1,000 contracts at the CBOT, according to mid-day estimates.

 

Wheat export inspections totaled 14.5 million bushels for the week ended March 5, according to USDA data released Monday. The inspections rose 3.5 million bushels from the week-earlier period.

 

The USDA has inspected 791.9 million bushels during the current marketing year compared to 988 million bushels in the same period a year earlier.

 

Wheat futures were pressured Monday "by concern about sluggish wheat export demand and forecasts for some much needed rainfall in the hard red wheat belt," said Doane Agricultural Services in a market commentary.

 

"Strength in the dollar is also a bearish factor as it will make U.S. wheat even less competitive on the world export market," Doane said.

 

 

Hard red winter wheat futures "traded both sides of unchanged today, still reeling after yesterday's heavy liquidation in wake of global economic concerns and losses in financial markets," according to the Kansas City Board of Trade's afternoon commentary.

 

Traders said buying was scattered with some end-user pricing, but a stronger dollar and uncertainty in the equities markets limited greater buying interest, according to the KCBT.

 

"There continue to be some ongoing concerns of dryness in HRW wheat areas, traders said, but there has been an increase in chances of rain in the forecast," the commentary noted.

 

 

Hard red spring wheat ended mixed, with the front-month contract at a 20 3/4-cent premium to the May.

 

An absence of deliveries is supporting the wide inverse spread, said Bryce Knorr, Farm Futures senior editor, in a market commentary.