December 2, 2005

 

US Wheat Outlook on Friday: Mixed on weak e-CBOT, pre-weekend

 

  

U.S. wheat futures were called to open mixed Friday amid a dearth of market-moving fundamental news, weak overnight trade and pre-weekend position-evening, brokers said.

 

In the overnight e-CBOT session, most-active March wheat at the Chicago Board of Trade closed down 1/4 cent at US$3.21 3/4.

 

First resistance was seen at US$3.23 1/2--Thursday's high--and then at US$3.25. First support was put at US$3.20 and then at US$3.17--Thursday's low, a technical analyst noted.

 

There were 1,941 deliveries posted against CBOT December wheat futures early Friday, with Henning Carey/LIT Division of Man Financial stopping 714 lots.

 

There were 10 deliveries and 348 redeliveries posted against KCBT December wheat and but no deliveries were posted Friday against MGE December wheat.

 

Cash U.S. hard red winter wheat basis bids were mostly steady to firm Friday; soft red winter wheat basis bids were mostly steady to up 2 cents in Memphis, Tenn.; and spring wheat basis bids were mostly steady to weak, grain merchandisers said.

 

Forecasts called for mostly dry conditions, except for a few flurries Sunday across the U.S. Southern Plains hard red winter wheat belt. Traders continue to eye drought conditions in Oklahoma and Texas.

 

Mostly dry conditions were also expected near-term across the U.S. Midwest soft red winter wheat belt. A few light flurries were possible in the west on Monday, according to Meteorlogix weather service.

 

Overnight U.S. wheat export sales were quiet.

 

Global wheat news was also relatively quiet, while wheat traders continued to watch harvest reports from key Southern Hemisphere exporters Argentina and Australia.