Thursday, October 28

Wheat lingers near 2-week high on global supply worries


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CANBERRA — US wheat futures edged higher on Friday to linger near a two-week high as concerns about global supplies stemming from adverse weather pushed the grain towards its second straight weekly gain.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade were up 0.1% at $7.18-3/4 a bushel by 0204 GMT, having closed up 1.7% on Thursday when prices hit a Sept 8 high of $7.20 a bushel.

* Wheat is up nearly 1.5% for the week.

* The most active soybean futures were little changed for the week after closing near-flat last week.

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* The most active corn futures were little changed for the week, having gained 1.8% last week.

* Wheat production in Russia, Canada and the European Union is set to take a hit due to abnormal weather conditions.

* Soybean export sales last week totalled 912,900 tonnes, near the high end of market forecasts that ranged from 500,000 to 1.1 million tonnes, according to the US Department of Agriculture.

* Export sales of 373,000 tonnes of corn were near the low end of trade expectations for 300,000 to 800,000 tonnes.

MARKET NEWS

* The euro got off to an unusually quiet start in Asia on Monday, having posted its worst weekly performance in three months, as investors await more developments and ratings downgrades from Europe.

* Oil edged lower in volatile trading on Friday, posting a second consecutive weekly loss as caution about Europe’s debt crisis and year-end positioning continued to spark selling into rallies.

* A rally in US stocks fizzled, leaving major indexes with modest gains on Friday, as Wall Street was torn between hope that US economic data signals better times ahead and fear Europe’s debt crisis will engulf world economies.

(Reporting by Colin Packham; Editing by Ramakrishnan M.)



financialpost.com