Wheat futures at the Chicago Board of Trade closed lower on Friday as the big global stocks of wheat continue to weigh on prices, traders said. CBOT March wheat closed 1-3/4 cents per bushel lower at $2.94-1/2 per bushel. Other months closed 1-1/2 lower to 1 cent higher. "There wasn't that much in here. Just a little more fund short-covering on the open, but locals sold it down," a pit source said.
Spread trade was active as firms rolled their March positions before first notice day on February 28.
Estimated volume was large at 38,102 futures and 4,515 options.
The market declined despite news Iraq said it was tendering to buy 100,000 to 150,000 tonnes of hard white milling wheat from the United States. But some traders are skeptical that a deal will be struck.
Traders and analysts have said the record-large stockpile of wheat globally probably would continue to counter the bullish perceptions of the export sector.
There was some underpinning in the market from the strong export number for wheat in Thursday's weekly export sales report by the US Agriculture Department and on a low subsidy being offered by the European Union to export European wheat.
The EU began offering export subsidies last week at a low 4 euros ($5.13) per tonne and maintained that level this week. Analysts in Paris say that is well below the level necessary to kick-start sluggish exports to a well supplied world market.
Exports were quiet overnight and late Thursday the Commodity Credit Corp bought 46,640 tonnes of wheat for donation to African nations.
Cash basis bids for SRW in the Midwest were mostly steady and farmer selling was light.
Technical traders saw March break above its 20-day moving average of $2.93-3/4 Thursday and that level now serves as key technical support. Important resistance is now at the 50-day moving average of $2.99-3/4.
The nine-day relative strength index for March closed Friday at 52. Technical traders view an RSI of 30 or less as an oversold market and 70 or more as an overbought market.
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