November 12, 2005


US Wheat Review on Friday: Settles mixed; spreads seen in CBOT, kansas city board of trade



U.S. wheat futures settled mixed Friday, led by gains in Chicago Board of Trade soft red winter wheat amid catch-up pricing to Kansas City Board of Trade higher protein hard red winter wheat futures, brokers say.


Continued rolling of December positions into deferred March futures by index funds was noted in both CBOT and KCBT wheat after a very active week of fund trade ahead of first notice day Nov. 30.


Minneapolis Grain Exchange December spring wheat futures set a two-week high of US$3.80 per bushel amid strong U.S. cash prices and good HRS export demand before fading to close just firm, brokers said.


CBOT December wheat futures settled Friday up 1 3/4 cents at US$3.11 1/2; and CBOT March wheat ended up 2 1/4 cents at US$3.28 1/4.


Commodity funds were light net buyers, while as many as 12,000 December/March spreads were traded, brokers said. Fimat USA, O'Connor and Co. and Prudential were the featured December/March spreaders, while Fimat also spread March/December.


In flat price trade, Cargill Investor Services was a light seller of March while Citigroup sold December, brokers said.


Cash spot U.S. SRW wheat basis bids were mostly steady to mixed Friday, with a 4-cent gain in the spot basis bid in Cincinnati; while spot midday Gulf SRW wheat basis bids were steady, they noted.


Overnight U.S. wheat export sales were quiet.



Kansas City Board of Trade


KCBT December wheat ended up 1 cent at US$3.71; and March closed down 3/4 cent at US$3.75.


"A lack of fresh inputs was the biggest problem for the session," one source said. "This reduced the market for much of the day to execution of December/March rolls."


ADM Investor Services sold 800 March and 100 December, Cargill Investor Services bought 400 December and sold 300 March and 100 July, Fimat USA bought 200 March, Man Financial bought 500 March and sold 300 December, Prudential Financial bought 700 March and sold 100 December, and Shay Grain sold 400 December and UBS sold 100 March, brokers said.


In spread trade, Shay Grain sold 1,400 December/March at between 3 cents and 4 cents, and bought 800 December/March between 3 cents and 3 1/2 cents; Prudential Financial bought 400 December/March and Fimat USA sold 400 March, they noted.


Cash spot U.S. HRW cash basis bids were steady to firm Friday; while spot midday U.S. Gulf HRW basis bids fell 6 cents, cash sources said.


Forecasts called for above- to much-above normal temperatures and below-normal rains across the U.S. Southern Plains hard red winter wheat belt, a worrisome forecast for particularly dry areas in Texas and Oklahoma, Meteorlogix weather service said Friday.



Minneapolis Grain Exchange


MGE December spring wheat settled up 3/4 cent at US$3.76; and March closed up 2 1/4 cents at US$3.82 1/4.


Cash spot U.S. spring wheat basis bids were steady to firm Friday, with a 10-cent jump in the spot Minneapolis rail basis bid, sources said.