US Wheat Review on Thursday: CBOT ends up for first time this month

 

 

U.S. wheat futures closed mixed Thursday, with Chicago Board of Trade wheat finishing firmer for the first time this month.

 

CBOT March wheat settled 1 3/4 cents higher at US$5.37 a bushel. Kansas City Board of Trade March wheat slipped 1 cent to US$5.27, and Minneapolis Grain Exchange March wheat lost 3 1/4 cents to US$5.43 1/4.

 

CBOT wheat ended higher in a turnaround from recent losses. The technical trend still looks lower, but the market was seen as short-term oversold, traders said.

 

There was some spillover strength from gains in CBOT corn, which finished up about 9 cents in a technical bounce and amid worries about a much-delayed U.S. harvest. Commodity funds bought an estimated 2,000 wheat contracts at the CBOT and were heavier buyers of corn.

 

CBOT wheat edged higher even though the U.S. Department of Agriculture in its December supply and demand report raised its forecast for U.S. and world wheat ending stocks. The USDA increased its estimate for world ending stocks to 190.9 million tonnes, from its November estimate of 188.3 million.

 

 

Kansas City Board of Trade

 

KCBT and MGE wheat, which do not attract as much interest from funds, finished in negative territory amid a lack of supportive news. KCBT March wheat finished above its session low of US$5.23 1/4.

 

The USDA raised its estimate for 2009-10 U.S. wheat ending stocks to 900 million bushels from its November estimate of 885 million, analysts said. The increase reflected a lower expected food use, according to the government.

 

It was surprising that USDA didn't lower its export estimate, given that export demand has been slow, traders said. The U.S. faces stiff competition for export business from other countries.

 

 

Minneapolis Grain Exchange

 

MGE March wheat finished above its session high of US$5.39 1/2.

 

The USDA raised its estimate for Canada's wheat crop, as expected, following a recent increase in Statistics Canada's forecast. The government pegged production at 26.5 million, up from its November estimate of 24 million. Canada will try to push "every extra bushel" into the export market, creating more competition for the U.S., a trader said.