US Wheat Review on Monday: Ends lower; bearish fundamentals weigh

 

 

U.S. wheat futures ended lower Monday, stumbling on speculative selling as bearish underlying fundamentals continue to weigh on prices.

 

March CBOT wheat ended 8 1/2 cents lower at US$5.19 1/2, March KCBT wheat settled 8 cents lower at US$5.16 1/4, and March MGE wheat finished 8 3/4 cents lower at US$5.26 1/2.

 

In CBOT trades, speculative fund selling was estimated at 2,000 lots.

 

Large global and domestic wheat supplies remain the fundamental feature casting a bearish cloud over the market, analysts said.

 

The absence of outside support to offset fundamental weakness coupled with poor export demand for U.S. supplies added to the defensive tonnee in the market, analysts said.

 

The market also showed disappointment with the lack of interest from Egypt for U.S. supplies and news the country was looking to create a long-term deal for Russian wheat.

 

Otherwise, technical pressure weighed on prices as active nearby contracts target layered technical support at the October lows in the US$5.10 to US$5.00 level basis March CBOT wheat.

 

Bearish signals from outside markets cemented wheat in negative territory, as the upward reversal of the U.S. dollar and subsequent retreat of crude oil and metal futures sent negative waves filtering through the market, analysts added.

 

The Egyptian Ministry of Trade and Industry said Monday that Rachid Mohamed Rachid, minister of trade and industry, will meet with Russian counterpart Viktor Khristenko on Wednesday to discuss the possibility of signing a long-term agreement with Russia to import high-quality Russian wheat on concessional terms.

 

Meanwhile, the U.S. Department of Agriculture and other federal agencies were closed Monday in the wake of a severe snowstorm over the weekend. As a result, the weekly export inspections report, normally released on Mondays, will be delayed until Tuesday at 11 a.m. EST.

 

CBOT markets will have a holiday shortened trading week, with markets closing at 1 p.m. EST Thursday, and remaining closed Friday for Christmas.