US Wheat Review on Wednesday: Futures rise, consolidate ahead of holiday

 

 

U.S. wheat futures ended higher in quiet trading Wednesday, consolidating as traders square positions ahead of the holidays.

 

March CBOT wheat ended 6 cents higher at US$5.29, March KCBT wheat settled 5 3/4 cents higher at US$5.23, and March MGE wheat finished 3 cents higher at US$5.34 1/4.

 

In CBOT trades, speculative fund buying was estimated at 1,000 lots.

 

The market experienced some short-covering bounce off its recent price break, with traders evening positions at year's end, analysts said.

 

Spillover support from corn and soy, weakness in the U.S. dollar and sharp gains in crude-oil futures provided a psychological boost to keep prices underpinned, analysts added.

 

Otherwise, activity was subdued, with traders unwilling to take on added risk in a choppy, thin holiday-volume environment. The absence of fresh news kept participation light, as the market overlooked bearish underlying fundamentals. The weight of large world supplies and a lack of U.S. export demand limited the upside potential.

 

Technical buying added to the supportive tonnee, while the ability of the nearby March contract to hold above trend-line support kept many sellers on the sidelines, a CBOT floor analyst said.

 

The U.S. Department of Agriculture will release its weekly export sales report at 8:30 a.m. EST Thursday. Analysts surveyed by Dow Jones Newswires estimate wheat sales for the week ended Dec. 17 to be in the range of 350,000 to 550,000 metric tonnes.

 

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

 

 

Kansa City Board of Trade

 

KCBT wheat ended higher in light trade volume. The market experienced consolidative pricing amid the thinly traded holiday doldrums.

 

 

Minneapolis Grain Exchange

 

MGE wheat futures ended higher, consolidating on year-end and quarter-end positioning. MGE was the weakest link in the wheat complex, unable to match Chicago and Kansas City gains amid a lack of speculative buyers, an MGE wheat trader said.