November 11, 2005

US Wheat Outlook on Friday: Up 1/2 cent on e-CBOT, soy calls

U.S. wheat futures were called to open up 1/2 cent Friday following firm overnight trade and on calls for a 1-2 cent higher open in Chicago Board of Trade soybean open, brokers said.

In the overnight e-CBOT session, most-active December wheat at the CBOT closed up 1/2 cent at $3.39 3/4 after making a fresh contract low and closing near the session low Thursday.

"The bears are still in firm near-term technical control," said Jim Wyckoff, a technical analyst. "It will take a close back above $3.30 to provide the bulls with a bit of fresh upside momentum."

First resistance for CBOT December wheat is seen at $3.13 and then at $3.16--Thursday's high, Wyckoff added. First support lies at $3.08 3/4--the contract low--and then at $3.05.

Cash U.S. hard red winter wheat basis bids were steady to firm Friday, with a 2-cent gain in Wichita, Kan. and U.S. spot soft red winter wheat basis bids were mixed, with a 4-cent gain in Cincinnati, Ohio and a 1-cent loss in St. Louis, Mo.

Forecasts called for above- to much-above normal temperatures and below-normal rains across the U.S. Southern Plains hard red winter wheat belt, a worrisome forecast for particularly dry areas in Texas and Oklahoma, Meteorlogix weather service said Friday.

Spot U.S. hard red spring wheat basis bids were steady to firm Friday, with a 10-cent gain in Minneapolis rail bids, grain merchandisers said.

Overnight U.S. wheat export sales were quiet.