US Wheat Review on Thursday: Futures stumble on poor export demand

 

 

U.S. wheat futures ended lower across the board Thursday, stumbling into the extended holiday weekend on poor export demand. March CBOT wheat ended 4 1/2 cents lower at US$5.24 1/2, March KCBT wheat settled 1 1/2 cents lower at US$5.21 1/2, and March MGE wheat finished 2 3/4 cents lower at US$5.31 1/2.

 

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

 

The bearish influence of sluggish export demand, reflective of a weekly export sales report served as the catalyst to keep futures on the defensive, analysts said.

 

Wheat sales were dismal at 221,000 metric tonnes, a marketing-year low, and 34% under our weak four-week average. "These weak sales came off lower prices recently and that makes it worse," said PFG Best analyst Tim Hannagan. Key world-buyer Egypt continues to snub the U.S. and further develop its romance with Russian wheat, he added.

 

The disappointing export sales offset the supportive influence of a weaker U.S. dollar and spillover strength from higher corn futures. Trading was light during Thursday's abbreviated session, as a lack of any other fresh news failed to inspire traders to take on added risk heading into the long weekend. The markets closed early at 1 p.m. EST.

 

The absence of fresh news kept participation light, with underlying fundamentals keeping buyers on the sidelines, a CBOT floor trader said. The weight of large world supplies and a lack of U.S. export demand continued to limit upside potential, he added.

 

CBOT markets will be closed Friday in observance of the Christmas Day holiday.

 

 

Kansa City Board of Trade

 

KCBT wheat ended lower in light trade volume. The market retreated, succumbing to bearish demand-side fundamental pressure.

 

 

Minneapolis Grain Exchange

 

MGE wheat futures ended lower as well, down in unison with Chicago and Kansas City amid a lack of fresh supportive news and the lackluster export demand, a MGE wheat trader said.