March wheat was up 30 cents at $10.93 a bushel early on Friday. Front six months locked higher at the 30-cent trading limit after USDA trimmed its US 2007/08 wheat ending stocks estimate. This is fifth consecutive days of limit up moves in CBOT, MGE and KCBT.
Minneapolis remains the leader as processors, exporters scramble to source high-protein wheat. Firms forced to cover short futures positions amid escalating margin calls is also keeping wheat futures hot. Traders eyeing the CBOT March/May spread which traded via options with March trading a 43-cent premium to May during Asian trading hours.
USDA said US wheat ending stocks for 2007/08 at 272 million bushels, below the forecast in January for 292 million and below an average of analysts' estimates for 273 million. CBOT and KCBT to increase daily trading limit to 40 cents from current 30 cents on February 12 in line with MGE move. Also, MGE to remove limits on its spot wheat contract effective on February 25.
India is negotiating to buy up to 400,000 tonnes of wheat from Kazakhstan to replenish depleted stocks, a senior government official said. India may not import wheat in 2008 as favourable weather is likely to boost output, the junior food minister said. Satisfactory precipitation being received in much of the US Plains HRW wheat region and no weather problems seen over the near term, DTN Meteorlogix said. March contract above all key moving averages.