MUMBAI (Commodity Online): U.S. wheat futures closed solidly higher as gains in CBOT corn and soybeans ignited a short-covering rally on Tuesday, traders say. Non-commercial speculative funds continue to hold a large net short position in CBOT wheat, they say.
As of Sept. 8, speculative funds were net short 69,122 contracts in CBOT wheat futures and options, according to a supplemental CFTC report. Spillover support from rallies in CBOT corn and soybeans helped lift wheat, traders say.
The row crops jumped on jitters about the potential for a frost to hurt immature crops next week, they say. It will be difficult for wheat to sustain its gains given large world supplies and lackluster export demand, analysts said. The U.S. Department of Agriculture estimates world wheat ending stocks for 2009-10 at 186.61 million tons, up from 122.6 million in 2007-08.
Trading platform that even a 5 year old can trade. Join nowCommodity funds bought an estimated 4,000 wheat contracts at the CBOT. CBOT December wheat closed up 16 ½ cents at $4.70 1/2 a bushel, Kansas City Board of Trade December wheat ended up 14 3/4 cents at $4.82 1/4, and Minneapolis Grain Exchange December wheat finished up 13 1/4 cents at $4.98.
Courtesy: CBE Group
