December 1, 2005

US Wheat Outlook on Thursday: Steady to down 1 cent on weekly export sales

U.S. wheat futures were called to open steady to down 1 cent Thursday on disappointing weekly U.S. wheat export sales, brokers said.

The U.S. Department of Agriculture reported Thursday weekly U.S. wheat export sales for the 2005-06 marketing year totaled 250,700 metric tonnes, a marketing year low and below traders' estimates of 300,000 to 500,000 tonnes.

The sales were also 42% below the previous week and 64% under the prior 4-week average, the government added.

Still, some traders looked for possible two-sided trade on follow-through technical buying after Wednesday's late rally and on first-of-the month fund buying.

There were 2,232 deliveries posted Thursday against Chicago Board of Trade December wheat.

In the overnight e-CBOT session, March wheat at the CBOT closed down 1/4 cent at USUS$3.20 1/2 while December ended up 1 1/2 cents at USUS$3.05 1/2 per bushel.

In global wheat news, Australia's wheat crop hasn't been unduly affected by unusually late rains in the year, which have halted and delayed harvesting in many areas of eastern Australia, industry participants said Thursday.

The government's chief commodities forecaster, the Australian Bureau of Agricultural & Resource Economics, on Tuesday revised up a forecast for wheat output to 24.1 million metric tonnes.