US Wheat Review on Tuesday: Climbs on spillover corn, soy support

 

 

U.S. wheat futures closed solidly higher Tuesday on borrowed strength from rallying Chicago Board of Trade corn and soy and weakness in the U.S. dollar, traders said.

 

Chicago Board of Trade December wheat ended up 17 1/2 cents at US$4.60 1/4 per bushel. Kansas City Board of Trade December wheat jumped 13 3/4 cents to US$4.75 1/2, and Minneapolis Grain Exchange December wheat rose 15 1/2 cents to US$4.96 1/2.

 

Buying in CBOT corn and soy spilled over into wheat amid a lack of fresh fundamental news, traders said. There is "not a wheat story," a CBOT floor trader said.

 

Corn and soy advanced on the technical buying, the weak dollar and worries about cold, wet weather. December corn closed up 16 3/4 cents, and November soy settled 25 cents higher.

 

Wheat was "joining the crowd" with its rally, a market analyst said.

 

CBOT December wheat in electronic trading hit a session high of US$4.71 1/2 a bushel, its highest price since Sept. 25. Short-covering and technical buying helped boost prices, traders said.

 

Non-commercial speculative funds continue to hold a large net short position in CBOT wheat. Commodity funds bought an estimated 4,000 contracts at the CBOT, traders said.

 

 

Kansas City Board of Trade

 

KCBT December wheat in electronic trading hit a session high of US$4.88 1/4, its highest price since Sept. 25.

 

KCBT wheat followed CBOT corn higher, with support seen from the weak dollar. A soft U.S. dollar is supportive because it makes U.S. grains more attractive to foreign buyers, traders said. Gains in crude oil and gold added to the bullish tonnee in the grains, they said.

 

The U.S. Department of Agriculture said 53% of the U.S. winter wheat crop was planted as of Sunday, compared with the average of 55%, and 26% was emerged, compared with the average of 27%. Seeding and development are progressing without major problems, analysts said. Moisture in the central and southern Plains is seen as favorable for planting of hard red winter wheat.

 

 

Minneapolis Grain Exchange

 

MGE December wheat hit a session high of US$5.06 1/2, its highest price since Sept. 25. The contract has not closed above US$5 since Sept. 24.

 

Harvest of spring wheat is nearly complete after delays caused by late planting and cool summer weather. Harvest of spring wheat was 97% complete as of Sunday, compared to the average of 99%, according to the USDA.