US Wheat Review on Wednesday: Finishes lower amid harvest pressure

 

 

U.S. wheat futures extended losses Wednesday on continued harvest pressure, comfortable supply levels and a lack of buying interest, analysts said.

 

Chicago Board of Trade September wheat stumbled 5 1/4 cents to US$5.35 1/2 a bushel. Kansas City Board of Trade September wheat fell 6 1/2 cents to US$5.73 1/2, and Minneapolis Grain Exchange September wheat closed down 1/4 cent at US$6.33 1/2.

 

CBOT wheat finished in negative territory after closing lower Monday and Tuesday. Traders appeared to want to sell strength in the market, as wheat was higher overnight but unable to sustain gains during the day, a market analyst said.

 

The supply story for wheat continues to look bearish, with ending stocks for both the U.S. and world considered comfortable, a trader said. The U.S. Department of Agriculture on Tuesday pegged U.S. all-wheat plantings above trade estimates.

 

Deliveries against the CBOT July wheat contract were "heavy" at 5,312 contracts, a trader said. On first notice day Tuesday, deliveries were 6,034 contracts. July wheat ended down 5 cents at US$5.06 1/4.

 

Commodity funds sold an estimated 3,000 contracts at the CBOT. CBOT September wheat traded within Tuesday's range and recovered a bit after hitting an open outcry session low of US$5.30 1/2.

 

 

Kansas City Board of Trade

 

KCBT wheat slumped on seasonal pressure from the U.S. winter-wheat harvest amid limited buying interest, traders said. Wheat is close to carving out early-harvest lows, analysts said.

 

With supplies considered comfortable, markets need to see a pick-up in demand to spark gains, an analyst said. The USDA is slated to issue its weekly export-sales report at 8:30 a.m. EDT (1230 GMT) Thursday. U.S. wheat sales for the week ended June 25 are expected to be 200,000 tonnes to 400,000 tonnes.

 

Deliveries against the KCBT July wheat future were 65 contracts. The contract ended down 6 cents at US$5.63 3/4.

 

 

Minneapolis Grain Exchange

 

MGE wheat recovered from earlier losses to close near unchanged. The market led the downside in Tuesday's slide.

 

September wheat pared losses after hitting an open outcry low of US$6.28. Nearby July wheat suffered heavier losses, closing down 9 1/4 cents at US$6.26 3/4.