WEEKLY WRAP-UP OF KCBT WHEAT FUTURES TRADING on January 14, 2011
By: Shelia A. Summers, KCBT Vice President - Marketing
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KCBT wheat futures traded both sides of unchanged on Monday, finding support from Egyptian export business and feeling pressure from snowfall in HRW wheat areas of Kansas, traders said. Underlying support also came from higher Chicago corn and soybean futures markets. However, the market moved lower on the day to finish down 2 to 4 3/4 cents.
On Tuesday, KCBT wheat futures were higher early on export news but moved lower due to fund selling, traders said. Colder weather in southwestern Kansas this week could threaten HRW wheat that did not receive good snow coverage for protection, traders said. On the day, prices were down 3 to 3 3/4 cents.
Friendly USDA crop reports were released Wednesday morning. U.S. wheat seedings were estimated at 4 million acres for 2011, slightly lower than previous guesses, traders said. U.S. grain stocks were estimated at 1.928 billion bushels, below previous guesses of 1.937 billion bushels. U.S. wheat carryout was estimated at 818 million bushels, versus an average guess of 842 million bushels. Prices were up 14 to 19 3/4 cents on the day.
KCBT wheat futures moved higher again on Thursday, influenced by a weaker U.S. Dollar, traders said. There was also some follow-through support from the previous day. In export news, Jordan announced a tender and USDA export sales reports were regarded as poor. On the day, prices were up 16 1/4 to 17 3/4 cents.
Kansas City wheat futures traded lower overnight and into Friday morning after China raised required reserves for lenders the fourth time in just over two months, according to traders. Concerns of domestic inflation led to the increase in reserve rates in China, traders added. Weakness in gold futures weighed on wheat prices today. Wheat lost more ground this morning compared to corn and soybeans due to more comfortable stocks numbers compared to row crops, traders said. The U.S. Dollar traded higher overnight, also weighing on commodity markets going into today. The market settled down 8 1/2 to 14 cents.
Other Items to Note:
- This week the protein premium scale was 5 cents lower on 12 through 12.2 percent, 10 cents higher on 13 percent and 5 cents higher on 13.2 percent.
- Estimated trading volume for the week at the Kansas City Board of Trade was 154,175 contracts.
In the past week, the KCBT futures contracts have changed the following amounts:
|
| AMOUNT |
| |
March |
| 13 3/4 | cents | 8.60 |
May |
| 14 1/2 | cents | 8.70 3/4 |
July |
| 16 | cents | 8.79 1/4 |
SPREAD |
| DIRECTION | CURRENT | SPREAD |
Mar/May |
|
|
|
SPREAD |
| AMOUNT | CURRENT | SPREAD | |
March/March |
| 14 1/2 | cents | 86 3/4 cents (premium Kansas City) |
Comments are NOT an endorsement by the KCBT of trading strategy.