US Wheat Review on Monday: Climbs on spillover support, technicals

 

 

Spillover strength and technical buying pulled U.S. wheat futures higher Monday as fresh money flowed into the markets, traders said.

 

Chicago Board of Trade September wheat closed up 21 cents at US$5.49 1/4 a bushel. Kansas City Board of Trade September wheat rose 19 3/4 cents to US$5.79, and Minneapolis Grain Exchange September wheat finished up 19 1/4 cents at US$6.24 1/4.

 

Rallies in CBOT soys and corn lifted wheat amid support from weakness in the U.S. dollar and gains in crude oil and equities, traders said. November soys ended up 48 1/2 cents, and December corn closed up 19 1/2 cents.

 

CBOT September wheat climbed above its July high and hit an open outcry session high of US$5.57. That was its highest price since June 29.

 

Commodity funds were seen as buyers of an estimated 8,000 contracts of CBOT wheat. Money seemed to be flowing into the markets at the beginning of the month, traders said.

 

 

Kansas City Board of Trade

 

Hedging activity picked up as the rise in prices encouraged producers to sell, a KCBT trader said. It was "probably the busiest day hedging-wise" in awhile, the trader said.

 

"Movement in the country improved today," the KCBT trader said. "I wouldn't say it was great."

 

The rally "improved the picture" for wheat, which has traded sideways lately, "but we didn't change" its technical picture, a trader said.

 

Sluggish demand continues to hang over the markets, analysts said. Weekly U.S. wheat export inspections of 13.548 million bushels were toward the low end of expectations, which ranged from 12 million-17 million bushels.

 

 

Minneapolis Grain Exchange

 

MGE wheat rose on support from the weak dollar and strong crude oil, a trader said. Wheat was mainly a follower, and there were ideas that the new month meant new money coming into the markets, he said.