Kansas City Board of Trade hard red winter wheat futures ended higher Tuesday, rebounding from an early slide on strength from financials and a protective bounce amid winter wheat condition concerns. The KCBT March settled up 5 cents at $5.53-1/4 per bushel after falling as low as $5.44-1/2 and May ended up 5 cents at $5.61-3/4 after sliding to $5.52-3/4.
Gains in US financial markets helped buoy the wheat market after losses Monday. Action in options was brisk with J.P. Morgan seen as an active in pushing July $5.70 straddles. J.P. Morgan was also seen as an active bull spreader of the July/December contracts. Continued concerns about dry soil conditions in the US Plains and a lack of beneficial rainfall in the near term was seen supporting prices.
A firmer dollar was a pressure point early. Also of note, India's farm minister said to recommend lifting a ban on wheat exports. Japan cut the price of wheat for the first time in 3 years. On the export front, Syria bought 200,000 tonnes of soft milling wheat believed to be of Russian origin.
Iraqi wheat production is seen at around 2 million tonnes in 2009, the country's agriculture minister said, despite a severe drought that has some traders expecting a far smaller crop. Japan was seeking to buy 22,300 tonnes of food wheat; and South Korea bought 22,000 tonnes of US wheat.
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