June 14, 2006
US Wheat Review on Tuesday: Lower on US harvest, outside markets
U.S. wheat futures settled lower Tuesday on U.S. winter wheat harvest pressure and following losses in precious metals and crude oil futures, brokers said.
Spreading was noted ahead of the June 30 first notice day for deliveries against the three U.S. July wheat futures contracts. Wheat/corn spreads were also noted at the Chicago Board of Trade.
India's tender this week for 2.2 million tonnes of wheat and persistent talk that Iraq may need hard wheat underpinned the wheat markets, they added.
CBOT July wheat ended down 4 cents at US$3.69 3/4 per bushel.
Speculative funds bought about 2,400 CBOT wheat futures during Tuesday's session after buying about 4,500 contracts by 1330 EDT, brokers said.
Man Financial spread 2,500 December wheat versus December corn. Fimat bought 800 July early and then sold September, they noted.
Funds spread about 5,000 September/July by 1330 EDT, lead by spreading of 2,000 September/July by both Fimat and O'Connor, brokers noted.
Kansas City Board of Trade
KCBT July wheat settled down 8 cents at US$4.71 1/2 amid forecasts for hot, dry harvest weather through this week in the U.S. Plains.
Man Financial sold 600 July while JP Morgan was a noted buyer of July and September, brokers said.
In spread trade, by midday, ADM Investor Services traded 1,000 July/September, Frontier Futures traded 200 July/September, Fimat traded 1,000 September/July and 200 December/March, UBS Securities traded 100 September/July and General Mills traded 200 March/December.
Spot cash 11% through 14% U.S. hard red wheat basis bids were unchanged Tuesday, according to the KCBT.
Minneapolis Grain Exchange
MGE July wheat closed down 4 3/4 cents at US$4.45 per bushel.
Cash spring wheat basis bids were steady to 10 cents higher Tuesday, cash sources said. Minneapolis wheat receipts totaled 141 railcars versus last year's 133 railcars. There was one durum receipt versus last year's 74 cars.
