US Wheat Review on Monday: Bounce on technical buying; lack of pressure

 

 

U.S. wheat futures ended higher Monday, bouncing back from Friday's setback on technical buying and lack of outside market pressure.

 

September CBOT wheat ended 4 1/4 cents higher at US$5.20 1/2, September KCBT wheat settled 2 3/4 cents higher at US$5.51 3/4, and September MGE wheat finished 6 cents higher at US$5.97 1/2.

 

A quiet news front and the absence of clear directives from outside financial markets allowed futures to find underlying buying amid perceptions recent declines had left downside movement a little overdone, analysts said.

 

Choppy activity was featured, with futures finding support from a lack of a concerted effort to press the market once technical support at recent lows held, a CBOT floor analyst said.

 

The market is holding a base at the low end of a recent range as a lack of pressure from corn and outside markets attracted buyers. Seasonal buying added to the supportive tonnee, as the reduction of harvest related pressure took some weight off the market.

 

However, futures continued to hover at the low end of a trading base, unable to gain upside traction amid sluggish export demand and a lack of any problems with U.S. or world supplies, analysts said.

 

The market had very little feature, with mixed signals from outside markets translating into a lack of firm direction in commodities in general.

 

The theme is expected to continue, with traders taking a cautious approach unless a big financial and fundamental event emerges to spark trader interest, analysts said.

 

In CBOT pit trades, speculative fund buying was estimated at 2,000 lots.

 

The DTN Meteorlogix weather forecast said In the Northern Plains spring wheat belt, cooler temperatures and showers should help ease any stress to wheat through the Montana growing areas. Mostly favorable conditions are in effect across North Dakota at this time.

 

The U.S. Department of Agriculture will release its weekly crop progress report at 4:00 p.m. EDT Monday.

 

 

Kansa City Board of Trade

 

KCBT wheat futures ended higher, struggling to climb in quiet trade on spillover support from corn futures and weakness in the U.S. dollar, analysts said. Upside movement was hampered by a hesitancy of participants to buy in the face of expected selling from farmers with wheat to move to clear storage space, analysts said.

 

 

Minneapolis Grain Exchange

 

MGE wheat futures also ended higher, advancing with the rest of the wheat complex in thin activity, traders said. The absence of producer activity kept trading light, as farmers were discouraged from marketing supplies following Friday's declines, a cash connected broker said.