US Wheat Review on Friday: Ends lower on ample supply, lack of demand

 

 

U.S. wheat futures closed lower Friday and neared contract lows as the market felt pressure from lackluster demand and ample global supplies, analysts said.

 

Chicago Board of Trade December wheat closed down 9 1/4 cents at US$4.87 1/4 per bushel, down 22 1/4 cents on the week. Kansas City Board of Trade December wheat fell 5 1/4 cents to US$5.09 3/4, and Minneapolis Grain Exchange December wheat was down 7 cents at US$5.44.

 

CBOT December wheat hit a session low of US$4.85 3/4 a bushel in electronic trading, just above its contract low of US$4.85 1/2, set Wednesday. The market has suffered a downward assault this summer due to weak fundamentals.

 

"The market is psychologically hobbled right now," said Greg Wagner, senior commodity analyst for AgResource Company. "It's hobbled fundamentally and it's psychologically hobbled."

 

It was seen as bearish that Statistics Canada pegged all-wheat production above trade expectations at 23.614 million tonnes as it added to ample supply of wheat in the world, traders said. The range of production estimates was 20.1 million to 23.31 million.

 

Commodity funds sold an estimated 4,000 contracts at the CBOT.

 

 

Kansas City Board of Trade

 

KCBT wheat finished lower amid a lack of fresh news to support stronger prices, a trader said. December wheat ended down 14 3/4 cents on the week. The contract hit a session low of US$5.06 1/2, just above its contract low of US$5.03 1/2.

 

The markets continue to look for stronger export sales, but the demand front was quiet Friday, traders said. The U.S. is competitively priced in the world, but large buyers don't show signs of wanting to extend coverage, an analyst said.

 

"You have to get realization for demand in order for this to perk up, without a doubt," Wagner said.

 

 

Minneapolis Grain Exchange

 

MGE wheat closed lower amid expectations for the U.S. spring wheat harvest to advance in the coming days, an analyst said. Harvest is behind schedule due to late planting and a cool summer.

 

MGE December wheat ended down 19 1/2 cents on the week.