June 28, 2006

US Wheat Outlook on Wednesday: Steady-firm amid consolidation trade

U.S. wheat futures were called to open steady to firm Wednesday in consolidation trade following recent gains on fears of a deterioration in the U.S. spring wheat crop and ahead of Friday's U.S. Department of Agriculture quarterly stocks and wheat acreage data, brokers said.

Friday is also first notice day for deliveries against the three U.S. July wheat futures contracts.

The USDA reported Monday a 3 percentage-point drop in the U.S. spring wheat crop's good-to-excellent condition rating to 57%, while hot, dry conditions are spurring fears of further deterioration, brokers say.

In the overnight e-CBOT session, most-active September wheat closed up 3/4 cent at US$3.95 1/4 per bushel.

Kansas City Board of Trade September wheat ended overnight down 1/4 cent at US$5.03 1/4 per bushel.

Cash U.S. hard red winter wheat basis bids were mixed Wednesday, with a 10-cent gain in Enid, Okla.; soft red winter wheat basis bids were mixed, with a 1-cent gain in the Kansas City truck bid; and spring wheat basis bids were mixed, with a 5-cent loss in the Minneapolis rail bid, grain merchandisers said.

In export news, India said that most of the 2.2. million tonnes of wheat it had imported were from Europe, Canada and Argentina.

In other global wheat news, recent rains across large areas of the parched Western Australian wheat belt will help what now appears likely to be a relatively small winter wheat crop, the president of lobby/services concern the Western Australian Farmers' Federation said Wednesday.