KCBT HRW wheat futures were lower early on a higher U.S. Dollar, but then some short-covering entered the market to bring prices higher, traders said.
Argentina's wheat crop is being estimated at 13.4 million metric tonnes by Argentina's Ag Minister, whereas the USDA pegged it at 14.5 million metric tonnes. Latest weather forecasts for the one-to-five day period in Argentina point to dry weather but recent rainfall has been better-than-expected, traders said. Brazil is expected to receive some moisture in the same timeframe.
Traders noted that Japan, Jordan, Libya and Syria are expected to offer tenders in the next few weeks.
KC Mar wheat was 13 1/2 cents higher at $6.87 at midday.
CASH GRAIN: The basis was lower this morning, with some categories down 10 to 15 cents, according to traders.
KCBT wheat volume/open interest for January 23
In contracts
Wheat Volume Exchs Open-Int Change
Mar-12 7768 972 60360 +1200
May-12 2075 2 21445 +660
Jul-12 3088 0 43293 +1220
Sep-12 654 0 8396 +78
Dec-12 1455 0 11698 +220
May-13 0 0 45 +0
Jul-13 0 0 310 +0
Dec-13 0 0 4 +0
TOTAL 15056 974 146010 +3387
Source: KCBT