US Wheat Review on Friday: Rise on month-end buying, outside support

 

 

U.S. wheat futures ended higher Friday, climbing on end-of-month position evening and borrowed strength from outside market influences.

 

September CBOT wheat ended 12 cents higher at US$5.28 1/4, September KCBT wheat settled 9 3/4 cents higher at US$5.59 1/4, and September MGE wheat finished 5 1/2 cents higher at US$6.05.

 

Month-end positioning in a short market spurred the recovery in wheat, as the market attempts to put in a bottom as the winter wheat harvest draws to a close, said Jack Scoville, analyst with Price Futures Group.

 

Borrowed strength from higher corn and soy futures as well as outside financial support from a weaker dollar and higher crude oil kept buyers enthused.

 

Signs of healing in the economy gave speculative buyers a boost, as market shorts remain cautious sellers with large funds unwilling to exit long positions, a CBOT floor analyst said.

 

However, longer-term upside momentum remains capped by plentiful domestic supplies, as the market still needs to establish a strong export demand base on a regular basis, said Joe Victor, analyst with Allendale Inc.

 

Anticipation of large spring wheat production and yields is seen tempering any lasting upside push as well, Victor said.

 

In CBOT pit trades, speculative fund buying was estimated at 3,000 lots.

 

In other news, Argentine wheat conditions improved significantly over the last week across much of the farm belt, although dryness persists in some of the western and northern areas, the Agriculture Secretariat said in its weekly crop report Friday.

 

 

Kansa City Board of Trade

 

KCBT wheat futures settled higher, rising in step with the rest of the grain complex, as speculative buyers emerged on supportive economic signals form outside financial markets.

 

 

Minneapolis Grain Exchange

 

MGE wheat futures rose in unison with the rest of the wheat complex. The market produced the least amount of gains, trimming its premium to other markets on spreads amid big yield and crop outlooks from the Wheat Quality Council's spring and durum wheat crop tour, said Victor.