November 17, 2005 

 

US Wheat Outlook on Thursday: Flat-Up 1 cent, led by KCBT, MGE on exports

  

 

U.S. wheat futures were called to open flat to up 1 cent per bushel Thursday, led by gains in higher-protein Kansas City and Minneapolis Grain Exchange wheat on supportive weekly U.S. wheat export sales and technical buying after recent losses, brokers said.

 

The U.S. Department of Agriculture on Thursday reported export sales for the week ended Nov. 10 totaled 565,300 metric tonnes for old and new-crop marketing years.

 

Net weekly U.S. wheat export sales for the 2005-06 marketing year of 564,300 metric tonnes were 59% below the previous week and 13% under the prior 4-week average, the USDA noted.

 

Major buyers included Japan (91,800 metric tonnes), Nigeria (75,000 metric tonnes, including 15,000 metric tonnes switched from unknown destinations), Colombia (66,300 metric tonnes), Venezuela (58,600 metric tonnes) and Iraq (55,000 metric tonnes).

 

In overnight U.S. wheat export sales, Japan bought 60,000 tonnes of U.S. wheat in a tender totaling 100,000 tonnes.

 

In global wheat export news, Jordan bought 100,000 tonnes of Russian and Black Sea wheat, Jordan's Ministry said Thursday.

 

In the overnight e-CBOT session, December wheat at the Chicago Board of Trade closed up 3/4 cent at US$3.07 1/2 after setting a contract low Wednesday of US$3.04 1/2 per bushel.

 

CBOT March wheat ended overnight down 1/2 cent at US$3.22, just above Wednesday's fresh contract low of US$3.20.

 

Cash U.S. hard red winter wheat basis bids were steady to firm Thursday; soft red winter wheat basis bids were steady to firm, with a 5-cent gain in the Cincinnati spot bid; and spring wheat basis bids were steady to weak, with a 15-cent loss in the spot Minneapolis rail bid, grain merchandisers said.

 

Forecasts called for continued dry weather across the U.S. Southern Plains hard red winter wheat belt and above-normal temperatures during the weekend.

 

In the U.S. Midwest soft red winter wheat belt, forecasts called for dry weather Thursday after light showers of up to 0.50 inch in the eastern belt during the past 24 hours.

 

Dry conditions were expected Saturday through Monday, with temperatures near to below normal Saturday through Monday, except near to above normal far western areas, Meteorlogix weather service said Thursday.