Wheat Market Recap Report for 11/4/2010
December Wheat finished up 23 1/2 at 713 3/4, 5 3/4 off the high and 21 up from the low. March Wheat closed up 24 at 753 1/2. This was 20 1/2 up from the low and 4 3/4 off the high. The market saw a lack of new interested sellers due to surging commodity markets in general. A sharp break in the US dollar and an inflationary tone for other commodity markets this morning sparked aggressive buying and short-covering early in the session today as the market quickly recovered all of the losses of the past three trading sessions. Traders continue to believe that the sharp break in the US dollar combined with a tightening supply of exportable surplus wheat out of Europe should boost demand for US wheat but traders have been disappointed with recent sluggish sales. Continued talk of dry conditions in the southern and western plains has added to the positive tone. Weekly export sales for wheat came in at 565,600 metric tonnes for the current marketing year and 44,000 for the next marketing year for a total of 609,600. Cumulative wheat sales stand at 58.8% of the USDA forecast for 2010/2011 (current) marketing year versus a 5 year average of 63.7%. Sales of 454,000 metric tonnes are needed each week to reach the USDA forecast. Algeria bought 200,000 tonnes of optional origin milling wheat in their tender for 50,000. December Oats closed up 16 at 377 1/2. This was 15 up from the low and 1 off the high.