US MIDDAY: wheat steadies on Egypt's purchase

18 Sep, 2004

Soft red winter wheat futures at the Chicago Board of Trade were steady early Friday, supported by Egypt's purchase of 115,000 tonnes of US wheat in its snap tender, traders said.
But the market was technically overbought, which kept prices range-bound. The nine-day relative strength index for December wheat stood at 72 as of Thursday's close, a level viewed as technically overbought.
Wheat futures were 1/2 cent higher to 1/2 cent per bushel lower by 10:40 am CDT (1540 GMT).
December was up 1/4 at $3.38-1/2. It climbed to a session high of $3.41-1/2 before meeting resistance.
Funds were covering their short positions early, floor traders said. Tenco bought 200 December near the open, while commercials were light sellers.

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