Wheat Market Recap Report for 2/2/2006 March Wheat finished up 8 at 347 1/4, 3/4 off the high and 8 3/4 up from the low. May Wheat closed up 8 1/4 at 358 1/2. This was 9 up from the low and 1 off the high.
A jump in Kansas City wheat supported the early rally after the lower opening. News that India would import 500,000 tonnes of wheat helped spark the early strength which is the first imports since 1999. Funds were noted buyers of near 3500 contracts into the mid-session. Traders await results of a 1 million tonne tender from Iraq which is now set for Sunday. Weekly US export sales for wheat came in at 429,200 metric tonnes as compared to trade expectations between 300,000-500,000. Cumulative sales have already reached 79.4% of the USDA forecast for the year as compared to 75.4% on average over the last five years. Sales of 311,800 metric tonnes per week are needed to reach the USDA estimate. The European Union lowered its wheat export subsidy for their weekly tender to just 4.92 euros as compared with 6.74 euros last week. Lower subsidies are seen as a supportive factor as this may help US wheat become a bit more competitive on the world export market. March wheat support comes in at 341 1/2 and 339 1/4 with resistance at 350 1/4 and 354 3/4.
March Oats closed up 4 at 196. This was 3 1/2 up from the low and 1/4 off the high.
