US MIDDAY: wheat surges on export sales report

06 Aug, 2004

Soft red winter (SRW) wheat futures at the Chicago Board of Trade were mostly higher at mid-morning on Thursday, boosted by strength in CBOT soybeans and corn and floor talk that China may have bought US wheat, traders said.
At 10:35 am CDT (1535 GMT), CBOT wheat was 3-1/4 cents higher to 1 cent lower, with September up 3 cents at $3.21-1/2 per bushel.
Pit sources said there was a rumour early Thursday that China may have bought 200,000 tonnes of milling quality wheat from the United States.
Some support also stemmed from USDA's export sales report released early Thursday that showed US wheat sales last week at 504,100 tonnes, within the range of estimates for 400,000 to 600,000 tonnes. Export activity overnight featured Japan's purchase of 85,000 tonnes of US wheat.
Chartists view an RSI of 30 or less as an oversold market and 70 or more as an overbought market. Technical support in the September contract was at $3.14 per bushel and resistance at $3.21-1/4 was broken, driving the contract to a session high of $3.23.

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