US Wheat Review on Wednesday: Shakes off losses and finishes firmer

 

 

U.S. wheat futures bounced in late dealings Wednesday and settled higher with neighboring markets, despite bearishness about weak export demand.

 

Chicago Board of Trade March wheat finished up 1/2 cent at US$5.37 1/4 a bushel. Kansas City Board of Trade March wheat rose 4 cents to US$5.30 1/2, and Minneapolis Grain Exchange March wheat gained 7 cents to US$5.44 1/4.

 

Wheat spent much of the day stuck in negative territory but shook off losses ahead of the close. Short covering helped underpin late gains in the grains and soy, said Mike Zuzolo, president of Global Commodity Analytics and Consulting.

 

The supply and demand storyline remains unsupportive for wheat. Egypt's state-owned General Authority for Supply Commodities snubbed the U.S. in a tender, as expected, and bought wheat from Russia and France. U.S. prices are too high to be competitive, traders said.

 

It's well known that there is a lot of wheat to go around in the world, an analyst said. U.S. ending stocks are estimated at a 10-year high, and world stocks are at an eight-year high, according to the U.S. Department of Agriculture.

 

CBOT March wheat finished above its session low of US$5.27 3/4, set in electronic trading, and its electronic high of US$5.44.

 

 

Kansas City Board of Trade

 

KCBT wheat recovered late in the day after slipping earlier in choppy trading and thin volume, a broker said. There was a lack of fresh news, he said.

 

"There's just not a lot of news all the way around," the broker said. "It gets pushed back to a little bit of a follower role."

 

KCBT March wheat finished above its on screen low of US$5.19 1/2 and below its electronic high of US$5.34 1/2.

 

 

Minneapolis Grain Exchange

 

MGE March wheat settled near its session high of US$5.46 1/2 after a late rally. The market recovered from losses on technical buying and short-covering, an analyst said. The contract's session low was US$5.34 3/4.

 

There was no fresh supply or demand news to justify MGE wheat ending up 7 cents, a broker said. The markets are in "a meandering trade" ahead of the Christmas holiday, he said.