Wheat Market Recap Report for 1/6/2011
March Wheat finished down 19 1/4 at 789, 20 3/4 off the high and 1 1/4 up from the low. July Wheat closed down 18 at 828 1/4. This was 1 up from the low and 18 3/4 off the high. March wheat closed sharply lower on the session and posted new lows for the day late. While outside market forces were negative, talk that timely snow ahead of the cold in the plains will help insulate the crop from cold weather damage added to the negative tone. A strong US dollar combined with fears of increased index fund trader selling helped to pressure the market. Dryness in the plains and solid export sales helped provide support. Algeria bought 350,000 tonnes of optional origin wheat for March delivery. The EU granted export licenses for only 72,000 tonnes of soft wheat which is relatively small but this pushed the total for the marketing year to 11.2 million tonnes as compared with 8.6 million last year by this time. Net weekly export sales for wheat, came in at 464,700 metric tonnes. As of December 30, cumulative wheat sales stand at 76.6% of the USDA forecast for 2010/2011 (current) marketing year versus a 5 year average of 75.1%. Sales of 365,000 metric tonnes are needed each week to reach the USDA forecast. March Oats closed down 11 1/2 at 377 3/4. This was 2 1/4 up from the low and 11 off the high.
Bron: CME