June 21, 2006

 

US Wheat Review on Tuesday: Up on spring wheat crop rating, human rights watch rains

 

 

U.S. wheat futures ended firm Tuesday following gains in Minneapolis Grain Exchange spring wheat futures on a larger-than-expected decline of seven percentage points in the crop's good-to-excellent rating in Monday's U.S. Department of Agriculture weekly crop progress report, brokers said.

 

The USDA reported late Monday that 21% of the U.S. spring wheat crop was headed, up 15 percentage points from last week.

 

This week's harvest delays due to rains in top U.S. winter wheat producer Kansas and forecasts for more rains this week across the Central U.S. Plains underpinned Kansas City Board of Trade hard red winter wheat futures.

 

Still, the U.S. winter wheat crop was 38% harvested, more than double last year's tally and 17 percentage points above the five-year average, the USDA said Monday.

 

The 18-state winter wheat average remains unchanged at 29% good-to-excellent condition.

 

Kansas, the top U.S. winter wheat producing state, had a major impact on the averages, traders said. The harvest in Kansas was 53% complete, up from 15% harvested the previous week.

 

Gains in the three U.S. wheat futures markets were limited Tuesday by a Chinese forecast of a total 2006 Chinese wheat crop of 102 million tonnes, up from its tally last year of 97.45 million tonnes, brokers added.

 

They noted increased 2006 Chinese wheat production could dampen that country's need for wheat imports.

 

CBOT September wheat ended up 8 1/2 cents at US$3.84 3/4 a bushel.

 

Speculative funds bought 3,500 contracts by 1330 EDT, brokers said. Iowa Grain bought 800 December, Man Financial bought 500 September, O'Connor and Co. bought 500 December and Tenco Inc. bought 500 September and 300 July, brokers said.

 

CBOT wheat spread trade was also active. JP Morgan spread 800 September/July while USA Trading spread 1,000 September/July, they said.

 

In U.S. wheat export news, the Korea Flour Milling Co. Ltd. sought 17,500 metric tonnes of U.S. No. 1 wheat in a tender to be concluded on Wednesday; and two South Korean flour mills - Daehan and Daesun - sought 9,500 metric tonnes of U.S. No. 1 wheat in a tender to be concluded on Wednesday.

 

Japan's Ministry of Agriculture, Forestry and Fisheries sought 100,000 metric tonnes of wheat, including 60,000 tonnes Of U.S. wheat, for Aug. 1-31 shipment.

 

 

Kansas City Board of Trade

 

KCBT September wheat futures ended up 12 1/2 cents at US$4.82 1/2.

 

Spot cash 11% and 13% U.S. hard red wheat basis bids were unchanged Tuesday, while bids for 12% and 14% HRW rose 2 cents, according to the KCBT.

 

 

Minneapolis Grain Exchange

 

MGE September spring wheat futures ended up 10 3/4 cents at US$4.53 1/2.

 

Cash U.S. spring wheat basis bids rose 5 cents to 15 cents Tuesday, cash sources said. Minneapolis wheat receipts totaled 95 railcars versus last year's 155 railcars. There were 12 durum receipt versus last year's 31 cars.