August 30, 2006

 

US Wheat Review on Tuesday: Ends lower; CBOT leads late declines

 

 

U.S. wheat futures ended lower Tuesday in choppy activity as the absence of fresh inputs limited buying interest, sources said.

 

It was a choppy, dull trading session, a CBOT-based commercial analyst said.

 

European crop concerns were considered old news, and the market needed some fresh inputs to trade off, a floor source said.

 

The market had little reaction to news that India was seeking more than 1.6 million metric tonnes of wheat on ideas India will purchase non-U.S. wheat, a floor analyst said.

 

Late speculative selling near the close pressured the market to the lows of the session, with the absence of buying interest extending the declines, the floor source added.

 

CBOT September wheat fell 4 1/4 cents to US$3.80 1/2, and December ended 3 1/2 cents lower to US$4.00 3/4.

 

On day only technical charts, CBOT December traded between its 20-day and 50-day moving averages.

 

In CBOT trades, Fimat bought 1,000 December, ABN Amro bought 500 December, and JP Morgan bought 500 December.

 

In spread trading Tenco bought 1,000 December-September.

 

Commodity funds were net buyers of 1,200 contracts.

 

 

Kansas City Board of Trade

 

An attempt to rally hard red wheat futures near mid-session failed with the market moving lower before late buying interest trimmed the losses, a KCBT floor trader said. Talk of Iraqi interest in U.S. wheat was noted but had little impact. Ideas that India would source its tender for wheat from other wheat exporting countries also limited buying interest, sources added. It was a low-volume day with little new inputs, the trader noted.

 

In midday KCBT trades, Man Financial bought 300 September and 600 December, JP Morgan bought 300 December and sold 200 December, FC Stonnee bought 200 September and sold 150 September, and Fimat sold 500 December.

 

KCBT September settled 1 3/4 cents lower at US$4.60 1/4 per bushel and December fell 1 1/2 cents to US$4.73 1/2.

 

 

Minneapolis Grain Exchange

 

Spring wheat futures also ended lower in choppy trading as small-scale fund selling weighed on the market, a floor trader said. Activity was two-sided for much of the session with prices stronger near the close on spread trading between spring wheat and CBOT soft red wheat, he added.

 

MGE September wheat settled 2 cents lower at US$4.47 per bushel and December fell 1 1/2 cents to US$4.61 3/4.

 

Minneapolis grain receipts totaled 122 cars of wheat and 136 cars of durum, compared to 358 cars of wheat and 30 cars of durum a year ago.