Wheat Market Recap Report for 5/9/2006 July Wheat finished up 9 1/4 at 384 3/4, 5 1/4 off the high and 6 1/4 up from the low. December Wheat closed up 10 at 415 1/4. This was 6 1/4 up from the low and 4 1/4 off the high.
The jump in outside markets and sharp drop in the US dollar helped support the early gains with gold moving to a 26 year high ahead of the opening. In addition, news that winter wheat crop conditions declined in the past week in spite of widespread rains in the plains helped support. Crops rated in good to excellent condition fell to 35%, down 1% from last week and down from 59% last year and 53% as the 16-year average. The spring wheat crop is 57% planted as compared with trade expectations at 60-65%, 78% last year and 66% as the 16-year average. The India Farm Ministry pegged 2006 wheat production at 71.54 million tonnes as compared with 73 million the previous estimate and 76 million expected earlier this year. This added to the positive tone as India is tendering for 3 million tonnes. Talk of possible frost conditions on Thursday also triggered some buying as fields in the flowering stage in northwest Kansas and Nebraska could be vulnerable to some damage. There were only 30 deliveries posted against the May contract this morning. Kansas crop conditions showed just 23% of the crop in good to excellent condition as compared with 26% last week and 30% two weeks ago. Kansas City wheat tested highs shortly after the opening before a set-back into mid-session but surged higher and posted new contract highs on aggressive buying after support held early.
July Oats closed up 4 at 187. This was equal to the low and equal to the high
