June 30, 2006

 

US Wheat Outlook on Friday: Up 3-4 cents on spring wheat worries, gold

 

 

U.S. wheat futures were called to open up 3-4 cents per bushel Friday on worries about continued deterioration in the U.S. spring wheat crop and following higher precious metals futures markets, brokers said.

 

The higher calls followed mostly neutral U.S. Department of Agriculture wheat stocks and plantings data, they added.

 

In Friday's much-awaited report, the USDA estimated 2006 U.S. all-wheat acreage at 57.873 million acres, above its March estimate of 57.128 million acres.

 

U.S. spring wheat seedings were seen at 14.595 million acres, above the USDA's March estimate of 13.899 million acres. Durum seedings were put at 1.885 million acres, just above the March estimate of 1.825 million.

 

U.S. wheat stocks as of June 1, which are marked as the 2005-06 wheat ending stocks, were estimated at 568 million bushels, above the USDA's June 9 wheat ending stocks number of 547 million bushels and above last year's 540 million bushels.

 

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

 

There were 1,552 deliveries posted against CBOT July wheat, matching expectations.

 

In Kansas City, there were 1,557 deliveries posted against July hard red winter wheat futures, with the ADM house account posting 1,313 lots and a customer of Prudential Financial the largest stopper at 583 lots.

 

There were no deliveries posted against MGE July wheat futures on Friday's first notice day.

 

In the overnight e-CBOT session, most-active September wheat closed up 3 cents at US$3.98 per bushel.

 

Technical support was seen at the 50-day moving average of US$3.97 1/4 per bushel. Resistance was seen at the overnight high of US$4.00 3/4 per bushel.

 

Kansas City Board of Trade September wheat ended overnight up 4 1/2 cents at US$5.12 1/4 per bushel.

 

Technical support was seen at the overnight low of US$5.06 per bushel while resistance was seen at US$5.15 per bushel.

 

Cash U.S. hard red winter wheat basis bids were steady to firm Friday, with an 8-cent gain in Hutchinson and at the Texas Gulf; soft red winter wheat basis bids were mixed, with a 6-cent loss in the Evansville bid and a 4-cent gain in Kansas City truck bid; and spring wheat basis bids were mixed, cash grain sources said.