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  • Nov 9th, 2005
  • Comments Off on MGE wheat lower, KCBT declines weigh
Hard red spring wheat futures on the Minneapolis Grain Exchange closed quietly lower on Monday on spillover weakness from Kansas City wheat and a lack of supportive news, traders said. "We just don't have a lot to provide much direction," one trader said.

MGE December wheat closed down 4 cents at $3.68-1/2 per bushel, with deferred months down 3 to 5 cents. Volume was very light, estimated at 2,856 contracts, down from 3,249 on Friday. Funds were mostly absent from Monday's trade. Friday's CFTC Commitments of Traders report showed large speculators lightly trimmed their heavy net long position in MGE wheat for the week ended November 1. For MGE futures and options combined, funds were net long 9,607 lots.

Funds remained heavily net long in Kansas City as well, while funds added to their net short position in CBOT wheat.

There was nothing in the export arena over the weekend to give wheat futures a boost. USDA put export inspections of US wheat for the week at 17.1 million bushels, down from 21.4 million a week ago.

Private forecaster Meteorlogix said warmer and drier weather over the next several days from Kansas northward would favour growth of the US Plains hard red winter wheat crop. However, crops in Oklahoma and Texas need rain.

After the markets closed, the US Department of Agriculture said 57 percent of the US winter wheat crop was rated in good to excellent condition, down from 61 percent the previous week.

USDA said the crop was 95 percent planted and 84 percent emerged, ahead of the five-year averages of 92 and 80 percent, respectively.

Copyright Reuters, 2005


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