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Choppy market conditions on Monday gave way to higher pricing by the close in HRW wheat futures. There was a chance of rain in HRW wheat areas at the end of the week. There was talk that colder weather in China could create problems with the winter wheat crop there, giving KCBT prices a boost. Traders were looking ahead to Friday's USDA crop production and supply & demand reports. The market closed up 3 to 6 cents.
Higher prices continued on Tuesday with buying in Kansas City HRW wheat futures and selling in Chicago SRW wheat futures on the first day of rebalancing of the commodity indexes, traders said. Weather and ongoing drought continued to bring underlying support to the wheat market despite some rain in the forecast. On the day, prices were up 1 1/4 to 3 cents.
Wednesday brought some lower prices on liquidation activity that reappeared in the marketplace, traders said. There was some selling in relation to the second day of fund index rebalancing, traders added. Buying of Kansas City HRW wheat futures and selling in Chicago SRW wheat futures continued to be a feature of the market. A storm system was moving through southern HRW wheat areas, bringing some moisture to areas of Texas and Oklahoma. The market closed down 3 1/2 to 7 1/2 cents.
KCBT wheat futures traded both sides of unchanged on Thursday, opening higher on positive export news but falling throughout the session on rain in HRW wheat areas. An announcement that Egypt purchased one cargo of U.S. SRW wheat and one cargo of Canadian wheat prompted early strength in the market, traders said. Rain fell in the Texas Panhandle, Oklahoma and parts of Kansas, injecting weakness into the market. On the day, prices were down 4 1/2 to 5 3/4 cents.
Kansas City wheat futures rallied sharply upon the release of USDA supply and demand reports on Friday, occurring at 11:00 a.m. CT for the first time. There was little to trade off of prior to the data, traders said, and corn and wheat shot higher within seconds of the release. All winter wheat plantings were estimated at 41.8 million acres, versus a previous average estimate of 42.6 million acres. Wheat carryout was estimated at 716 million bushels versus a previous average estimate of 743 million bushels. Last month's estimate for carryout was 754 million bushels. KC March wheat traded up to $8.19 3/4 before backing off of the highs within minutes of the report release. The market settled up 8 to 11 cents.
Other Items to Note:
- This week the protein premium scale was 5 cents higher on ordinaries through 11 percent, 1 cent higher on 11.6 through 11.8 percent, 10 cents higher on 12.6 percent, 12 cents higher on 12.8 percent and 17 cents higher on 13 through 14 percent.
- Estimated trading volume for the week at the Kansas City Board of Trade was 110,857 contracts.
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