March 22, 2007

 

US Wheat Review on Wednesday: Ends higher on fund buying, CBOT corn

 

 

U.S. wheat futures ended higher Wednesday amid fund buying and spillover strength from the neighboring corn market, traders and analysts said.

 

Chicago Board of Trade May wheat closed up 2 3/4 cents at US$4.65 1/2 per bushel, Kansas City Board of Trade May wheat ended 3 1/4 cents higher at US$4.86 3/4, and Minneapolis Grain Exchange May wheat finished up 3 3/4 cents at US$5.05 1/4.

 

Wheat has little fundamental support but looked to the neighboring corn market for direction, a CBOT floor trader said. Trading was choppy during much of the day session amid a general lack of fresh inputs, he added.

 

Market participants continue to look ahead to the release of the U.S. Department of Agriculture's planting intentions and grain stocks report on March 30, traders said.

 

There also was support from funds buying an estimated 2,000 contracts at CBOT, a floor broker said. In pit trades, Man Financial sold 600 July. Fimat spread 800 July/May.

 

 

Kansas City Board of Trade

 

Fund and local buying pushed prices up at KCBT, a floor trader said. There was "quite a bit" of spread trading, with traders buying KCBT and selling CBOT, she said.

 

Weather conditions continue to look favorable for hard red winter wheat and bearish for prices, the trader added.

 

The U.S. Southern Plains are seeing more rain, which should continue through the weekend, according to DTN Meteorologix forecasts. Southeast Kansas has seen up to 1 1/2 inches of rain in the past 24 hours, the weather firm said.

 

Scattered rain is expected in the rest of the region by Thursday night. By Friday night the intensity will pick up across the area, Meteorlogix said.

 

 

Minneapolis Grain Exchange

 

There was some inter-market spread trading, with market participants buying MGE and selling CBOT, a floor trader said. Man Financial bought MGE December and sold Chicago, he noted.

 

In general, there was not a lot for sale in the market, the trader added. Floor activity was "pretty dead" amid a lack of fresh news, he said.

 

There's really no news that will affect us right now," he said. "There are no exports to talk about."