July 22, 2006

 

US Wheat Review on Friday: Mostly higher; early buying fades

 

 

U.S. wheat futures ended mostly higher Friday, unable to maintain early strength built on follow-through fund and technical buying at both the Chicago Board of Trade and Kansas City Board of Trade, sources said.

 

Follow-through fund and technical buying pushed prices to levels not seen since July 12 in CBOT September futures, but additional buying failed to emerge around mid session and futures drifted back near Thursday's settlements in choppy trade, they noted.

 

Ongoing concerns about hot weather in France added to the early firm tonnee, they said.

 

Spring wheat futures at the Minneapolis Grain Exchange remained in their recent role of a follower, a floor broker said, as harvesting of the crop was beginning.

 

CBOT September wheat rose 3/4 cent to US$4.07 1/4 per bushel and December gained 1 3/4 cents to US$4.26 1/4.

 

On day-only technical charts, CBOT September ended above its major moving averages.

 

In CBOT trades, Calyon bought 800 September, JP Morgan bought 800 September, Man Financial bought 600 September, Tenco bought 500 September and RJ O'Brien bought 500 September.

 

ABN Amro sold 500 September, Man Financial sold 500 September, JP Morgan sold 500 September, Rand Financial sold 500 September and 200 December, and Fimat sold 500 September.

 

Commodity fund buying was estimated at 2,000 contracts.

 

 

Kansas City Board of Trade

 

KCBT wheat futures settled higher, benefiting from early buying interest from commodity funds and technical buying, before dipping at mid session when the buying dried up, a KCBT floor broker said.

 

The market broke from its highs at midday and then spent most of session drifting, he added.

 

In KCBT trades, Man Financial, JP Morgan and Prudential Financial were noted as market participants, sources said.

 

KCBT September settled 3 1/2 cents higher at US$5.06 and December gained 4 cents to US$5.21 1/2.

 

 

Minneapolis Grain Exchange

 

Spring wheat futures ended mostly higher as the market was "kind of a follower" of the other wheat markets, an MGE floor trader said. Sources noted light KCBT-MGE spreading, with commercial spreading of Sep-Dec spring wheat estimated at 2,000 contracts, and commercials on both sides of the market, sources said.

 

MGE September wheat ended 3/4 cent lower at US$5.04 and December rose 3 1/4 cents to US$5.12 1/4.

 

Minneapolis grain receipts totaled 157 cars of wheat and one car of durum, compared to 83 cars of wheat and 20 cars of durum a year ago.

 

On Friday afternoon, the Commodity Futures Trading Commission is scheduled to release the weekly Commitments of Traders Report for the period ending July 18.

 

On Monday, the U.S. Department of Agriculture is scheduled to release the weekly export inspections at 10 a.m. CDT, and at 3 p.m. CDT, the weekly crop conditions are due for release.