US MIDDAY: wheat mixed on technical signals

31 Aug, 2005

Wheat futures at the Chicago Board of Trade were narrowly mixed on Tuesday, as a surge in CBOT soybeans helped the market shake off early weakness, traders said. But sluggish demand for US soft wheat capped upward momentum.
CBOT September wheat was up 1/2 cent at $3.11 per bushel, with December down 1/4 at $3.26.
Fimat Futures and Rand Financial each bought 300 December contracts while Cargill Investor Services and Refco Inc each sold about 300 December, traders said. Bullish technical signals and a heavy net short position held by commodity funds underpinned the market. The nine-day relative strength index for December closed Monday at 37, approaching the benchmark of 30 that chartists view as one sign of an oversold market.

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