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Mid-Session Wheat Market Report for 7/8/2008

December wheat opened 5 1/4 cents lower on the session at 853 3/4 this morning and established an early trading range of 836 to 854. Wheat again opened lower and sold off this morning although to a lesser extent than yesterday. Traders are saying again today that the main reason for the weakness is the sharp liquidation sell off in corn and soybeans. Weakness in crude oil and gold was also said to be a factor along with weather. Some harvest delays are expected due to heavy rains in harvest areas north of the Ohio River today and tomorrow followed by somewhat lesser amounts of rain across most harvest areas on Sunday and Monday. Chicago wheat lost marginally to KC in the December contracts in early trade. Basis levels at the Gulf are said to have a weak tone again this morning in the wake of Jordan's purchase of 50,000 tonnes of wheat from Black Sea origins at prices that are once again substantially below US prices. Daily limits are expanded today for soybeans, corn and meal, but not for wheat which did not finish at limit down yesterday. Private analysts in Australia continue to fall in line with recent reductions in forecasts for that country's newly planted wheat crop.




 
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