Hard red winter wheat futures on the Kansas City Board of Trade ended lower on Friday, pressured by a firm dollar and declines in other grains markets, traders said. The KCBT December wheat contract ended down 1/2 cent at $5.73, and March closed off 1 cent at $5.90-1/2.
December fell as low as $5.63 on the day, and March slid to $5.81-1/2. Active late trade with wide closing range noted. Spillover pressure from a drop in Chicago Board of Trade wheat, corn and soybean markets weighed on KCBT wheat. Bearish moves in wheat options added pressure. Gains in financial markets helped underpin wheat. Recession fears persisted and a stronger dollar made wheat less competitive with foreign suppliers.
End-of-month book squaring was noted, with many shy to take new positions ahead of the weekend in an uncertain economy. Next week's US presidential election eyed. Market disappointed that Japan's Ministry of Agriculture bought less wheat than planned for the fifth food grain tender in a row on Friday, including no US supplies.
Analysts see Australian wheat exports recovering by at least 90 percent from the last season. Weather termed mostly beneficial for US new HRW wheat crop. Rain slowed Argentine farmers' progress with harvesting 2008/09 wheat this week, but the showers improved the outlook for maturing crops.
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