US wheat futures settled firm on Thursday, following the trend as most of the Chicago Board of Trade grains floor bounced back from steep declines this week, traders said. Chicago Board of Trade wheat was considered oversold after the spot contract fell to a 16-month low on Wednesday, triggering short-covering.
But wheat and other grains ended off the day's highs, as choppy, nervous US stock markets tempered enthusiasm across the commodities sector. At the CBOT, December soft red winter wheat settled 5-1/4 cents higher at $5.23 per bushel; March up 4-1/2 at $5.42. Commodity funds were net buyers of 1,000 CBOT wheat contracts, traders said.
At the Kansas City Board of Trade, December hard red winter wheat settled up 3-1/2 cents at $5.53 a bushel; March up 4-1/2 at $5.70. At the Minneapolis Grain Exchange, December spring wheat settled up 5-3/4 cents at $6.05-1/2 a bushel; March up 7-1/2 at $6.02-1/2. MGE December-March spread inverted this week as grain movement stalls.
CBOT estimated volume was moderate at 44,788 futures and 15,535 options. Estimated Kansas City trade was 6,923 futures and Minneapolis volume was pegged at 6,204 futures. Export sales data viewed neutral; USDA reported export sales of US wheat in the latest week at 386,900 tonnes (383,900 for 2008/09), within a range of estimates for 350,000 to 550,000 tonnes.
Mostly favourable crop weather continues in US Plains winter wheat belt with a mix of rain and snow, followed by a warm, dry spell next week. Japan's tender to buy 75,000 tonnes US wheat failed to find enough bidders, resulting in no purchase. More rain needed in some Argentine wheat areas, and dryness a concern in South Australia, Victoria and south-west New South Wales.
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