MGE wheat sharply higher

Spring wheat futures at the Minneapolis Grain Exchange closed sharply higher on Monday, notching contract highs as concerns about dry weather in the northern US Plains triggered speculative buying, traders said. "The funds are interested, and there is some scale-up commercial buying," one Minneapolis trader said.
MGE July wheat settled 14 cents higher at $5.10 per bushel after hitting a contract high at $5.13. September ended up 14 cents at $5.07 after hitting a new high at $5.12.
ADM Investor Services, UBS Warburg and Fimat USA were among the day's featured buyers, traders said. Volume was estimated by the exchange at 6,355 contracts, down from 7,723 on Friday. Weather remained the focus as the spring wheat crop continued in the heading phase.
"It looks a little stressful there," Meteorlogix Weather Service forecaster Mike Palmerino said of the northern Plains. "The forecast remains relatively dry with periods of heat."
The condition of the US spring wheat crop has drawn close attention in recent weeks because drought has reduced the hard red winter wheat harvest, tightening US stocks.
After the markets closed, the USDA said 52 percent of the spring wheat crop was rated in good to excellent condition, down 5 points from the previous week's rating of 57 percent. Traders were expecting a 2- to 3-point drop. The USDA reported the US winter wheat harvest at 65 percent complete, above the five-year average of 55 percent, but lagging trade expectations of about 70 percent. There was some short covering ahead of the US Independence Day holiday on Tuesday, when all US markets will be closed.
But funds remained heavily net long. The CFTC's Commitments of Traders report on Friday showed that large speculators widened their net long position in MGE wheat futures for the week ended June 27.
Deliveries against the MGE July contract totalled 62 lots, with the Country Hedging house account stopping 49. Weekly US export inspections data was delayed. The US Department of Agriculture said it would release its weekly grain inspection report on Wednesday instead of Monday due to "technical difficulty."
Exports were mostly quiet overnight. Jordan purchased a second consignment of 100,000 tonnes of Syrian milling wheat in a deal agreed this year for up to 300,000 tonnes. Also, Syria issued a tender for the sale and export of 50,000 tonnes of soft wheat and 50,000 tonnes of durum wheat.