US Wheat Review on Thursday: CBOT, Kansas City Board of Trade end lower as Minneapolis Grain Exchange advances

 

 

U.S. wheat futures settled mostly lower Thursday after rising earlier in the session, although Minneapolis Grain Exchange wheat held on to its gains.

 

Chicago Board of Trade July wheat slipped 1 1/4 cents to US$5.94 3/4 a bushel. Kansas City Board of Trade July wheat stumbled 3 1/2 cents to US$6.44 1/2, and MGE July wheat jumped 7 1/2 cents to US$7.34.

 

CBOT wheat felt support during the session from a rally in soys and retreated as soy came off its highs, a trader said. July soys closed up 21 cents at US$12.67 a bushel after hitting an open outcry session high of US$12.91.

 

"It was hard to get really bearish when beans were up 40 cents," the trader said.

 

CBOT July wheat reached an open outcry session high of US$6.07 1/2 before pulling back. It closed at a fresh three-week low.

 

A drop in the U.S. dollar helped support the early surge, traders said. The direction of the dollar has "certainly taken a strong hold on the commodity markets" and will remain a factor, one trader said.

 

Fundamentals for wheat remain weak as world supplies are comfortable and demand for U.S. wheat remains lackluster, analysts said. The U.S. Department of Agriculture on Wednesday trimmed projections for new-crop production but raised forecasts for new-crop ending stocks.

 

Commodity funds sold an estimated 2,000 wheat contracts at the CBOT.

 

 

Kansas City Board of Trade

 

A "pending-harvest attitude" weighed on KCBT wheat, with hard red winter wheat cutting expected to pick up speed in the U.S. Plains, a KCBT trader said. Harvest around Enid, Okla., should be "in full force this weekend," she said.

 

Weakness in the dollar and the soy rally helped boost wheat before the markets backpedaled, a floor trader said. KCBT July wheat hit an open outcry session high of US$6.57 1/2.

 

 

Minneapolis Grain Exchange

 

MGE wheat ended firmer as traders built in a premium for higher quality amid worries about risks from late spring wheat planting, traders said. There was some inter-market spreading, with participants buying MGE wheat and selling KCBT wheat and CBOT wheat, traders said.

 

The MGE trades hard red spring wheat, prized for its high protein content. The CBOT trades soft red winter wheat, and the KCBT trades HRW wheat.

 

MGE July wheat hit a session high of US$7.39. September wheat, which represents the new crop, closed up 5 cents at US$7.28 1/4 after hitting a session high of US$7.32 1/4.