August 17, 2006


US Wheat Review on Wednesday: Mixed, kansas city board of trade up; CBOT, minneapolis grain exchange slip



U.S. wheat futures ended mixed Wednesday, with Kansas City wheat a leader to the upside, while Chicago wheat continued to grind out losses in quiet trade.


Chicago Board of Trade September wheat futures ended 5 1/4 cents lower at US$3.71 1/2, September Kansas City wheat settled 2 1/2 cents higher at US$4.52 1/4, and Minneapolis September wheat ended 2 1/2 cents per bushel lower at US$4.50 3/4.


Wheat had a split market, with firm cash basis levels and export demand hopes providing price strength, while inter-market spreads and technical pressures applied weakness, said Bill Nelson, associate vice president with A.G. Edwards and Sons in St. Louis.


The market had a quiet theme, with inter-market spreads featured. Chicago wheat traded an outside lower day on technical charts, with light speculative fund selling emerging after early buying interest waned, analysts said.


The absence of fresh market moving news failed to provide directives for prices, with KCBT wheat supported by underlying fundamentals and a need to push prices to encourage winter wheat seedings ahead of fall plantings, added Nelson.


Meanwhile, the market has shifted to demand outlooks from supply features and needs confirmation of fresh export purchases to attract buyers to the market, traders added.


The U.S. Department of Agriculture is scheduled to release its weekly export sales report Thursday, at 7:30 a.m. CDT. Analysts anticipate export commitments in the range of 300,000 to 500,000 metric tonnenes.


In CBOT pit trades, O'Connor bought 500 December, Rosenthal bought 300 December, and Tenco was a buyer of 300 September. Citigroup sold 1,200 December, O'Connor sold 1,500 December and JP Morgan sold 400 December.





KCBT wheat ended a quiet session at higher levels. The market followed the firm overnight theme for most of the day with the rolling of spreads the featured attraction in the absence of fresh market moving news, KCBT traders said.





MGE wheat futures ended mixed, torn between the diverging price movements of Kansas City and Chicago, traders said. A quiet news front provided little direction, while firm cash prices providing light price support. Otherwise, fund selling in the September/December spread served as the featured attraction of the day, traders added.