CBOT wheat futures up

Wheat futures at the Chicago Board of Trade closed higher on Monday amid dwindling global wheat stocks and supportive export news, traders said. Support also stemmed from a technical bounce after the market last Wednesday fell to a one-month low.
"Recent weakness left it oversold so it was a technical recovery, that and some fundamental support," said Shawn McCambridge, analyst for Prudential Financial.
CBOT wheat was up 7 to 12-1/2 cents per bushel, with September up 9 at $3.97-1/2 per bushel. Volume was huge estimated at 98,122 futures and 8,340 options.
Traders said active spreading of September/December was noted and funds staged their end-of-the-month rolling of positions. Late selling of 1,200 December contracts also was noted, the traders said.
A drawdown in global wheat output this season has been supporting the wheat market, and export news over the weekend may have given wheat bulls some additional fodder.
US Wheat Associates market analyst Joseph Sowers said on Monday that China was expected to import 1 million tonnes of milling wheat by the end of June 2007 and export 2 million tonnes of feed wheat. Sowers also said India was struggling to rein in rising prices and would import 4 million tonnes.
Sowers talked to Reuters on the sidelines of a grains conference in Hanoi.
Export sources said Taiwan on Tuesday will tender for 96,340 tonnes of US wheat and Israel is tendering for 20,000 tonnes of feed wheat from Europe.
USDA early Monday said 11.8 million bushels of wheat were inspected for export last week, below estimates for 12.0 million to 17.0 million bushels.
Weather was moving to the background as a market factor for US wheat futures because the winter crops have been harvested and the US spring wheat crop is currently being harvested.
Meteorlogix weather on Monday said hot and dry weather in the US Northern Plains would aid spring wheat harvest but harm corn and soybeans. After the markets closed, USDA reported that 32 percent of the US spring wheat crop was rated good to excellent, compared to 34 percent in those categories last week.
Friday's CFTC commitments of traders report for futures and options combined showed that as of last Tuesday large speculators were long 83,665 lots, up 1,036 from the previous week, and short 59,841, down 3,457.
Technical traders watched the September contract move above resistance at its 100 day moving average of $3.91-3/4. Key support was at its 200 day ma of $3.78-1/4.