US Wheat Review on Tuesday: Closes slightly up on positioning, dollar

 

 

U.S. wheat futures rose slightly Tuesday as the markets took a breather after recent sell-offs, but the ongoing harvest limited gains, traders said.

 

Chicago Board of Trade September wheat edged up 3/4 cent to US$5.75 3/4 a bushel. Kansas City Board of Trade September wheat gained 1/2 cent to US$6.14 1/2, and Minneapolis Grain Exchange September wheat ended up 3 1/2 cents at US$6.93 1/4.

 

Position-evening and a drop in the U.S. dollar helped support modest gains during a lackluster trading session, traders said. The markets felt additional support from strength in CBOT soys, corn and in crude oil, they said.

 

Wheat was due to bounce after falling hard since the beginning of the month, an analyst said. Nearby CBOT July wheat has dropped nearly US$1.30 since hitting an eight-month high June 1. The contract closed up 3/4 cent at US$5.46 3/4.

 

September wheat traded both sides during the session and pared gains after hitting an open outcry session high of US$5.80. It was clear that ""people weren't terribly enthusiastic about buying" wheat, a trader said.

 

Commodity funds bought an estimated 4,000 contracts at the CBOT.

 

 

Kansas City Board of Trade

 

Position squaring supported mild gains in KCBT wheat, a trader said. Barring any "earth-shattering news," the market should continue to weaken as it's the seasonal tendency for prices to ease at harvest time, he said.

 

The ongoing U.S. winter wheat harvest limited gains even though the U.S. Department of Agriculture's weekly crop progress report showed cutting was behind schedule, a trader said. Harvest was 20% complete as of Sunday, down from 22% last year and the average of 31%, according to the USDA.

 

"I don't think people pay any attention to that," the trader said. "This weather looks good for drying, and harvest is going to progress."

 

Nearby KCBT July wheat settled unchanged at US$6.04.

 

 

Minneapolis Grain Exchange

 

MGE wheat led the upside, with nearby July wheat closing up 8 cents at US$7.01 1/2.

 

Acreage estimates from Statistics Canada were seen as neutral, a trader said. The estimates may not reflect the impact of late planting, frosts or dryness, an analyst said.

 

Statistics Canada trimmed its estimate for 2009 all-wheat plantings to 24.9 million acres from its April estimate of 25.2 million, which was within trade expectations of 23.5 million to 25.2 million. Spring wheat plantings were estimated at 17.5 million, up from the April estimate of 17.3 million.