US Wheat Review on Monday: Prices pull back after rising Friday

 

 

U.S. wheat futures on Monday pulled back amid continued pressure from large supplies and a lack of supportive signals from other markets.

 

Chicago Board of Trade May wheat ended down 6 cents, or 1.2%, at US$4.79 1/4 per bushel. Kansas City Board of Trade May wheat lost 6 1/2 cents, or 1.3%, to US$4.88 1/4. Minneapolis Grain Exchange May wheat fell 6 1/4 cents, or 1.2%, to US$5.07 1/4.

 

Prices retreated after rising Friday. The gains provided a selling opportunity as the markets' fundamental supply and demand storyline is unsupportive, an analyst said.

 

U.S. wheat supplies are at a 22-year high and other countries are undercutting the U.S. for export sales to price-sensitive buyers. There was a lack of fresh news out to change the markets' storyline.

 

Weekly U.S wheat export inspections were 9.167 million bushels, below expectations of 14 to 20 million. By comparison, inspections were 21.091 million for the week ended March 4, 19.092 million for the week ended Feb. 25 and 19.534 million for the week ended Feb. 18, according to the USDA.

 

CBOT May wheat hit a session low of US$4.76 3/4, below Friday's low of US$4.77 1/4. Commodity funds sold an estimated 2,000 contracts.

 

 

Kansas City Board of Trade

 

KCBT wheat rose 5 1/4 cents Friday and gave back all the gains Monday. The contract finished near its session low of US$4.87 1/4.

 

Strength in the U.S. dollar added to a negative tonnee for wheat, an analyst said. A firm dollar is often seen as negative because of the perception it makes U.S. grain less attractive to foreign buyers.

 

 

Minneapolis Grain Exchange

 

MGE wheat finished up 9 cents on Friday and gave back most of its gains. The contract ended near its session low of US$5.06 3/4.

 

There continue to be concerns that flooding could hit crop areas of the northern U.S. Plains and delay spring planting. The Red River in eastern North Dakota and western Minnesota is expected to crest about 20 feet above flood stage and three feet below last year's record crest by Saturday, according to the Department of Defense.