Futures news, wheat. USDA report dated 09.03.2012 was neutral and had no impact on prices:
For the first time in several last months ending stocks have dropped, namely from 213.1 mmt to 209.58. This supported current prices.
Production has risen to 694.02, use – by 3. mmt, to 683.93. In other words, forecast remains surplus, which casts pressure on prices.
Prices for wheat to be supplied in May are traded within a narrow range of 6$-6.8$ per bushel, which is influenced by a number of differently directed factors (in addition to USDA report).
Support:
- adjacent markets, mostly soybeans – uptrend continues since December 2011, against deficit, shortage of production, and transit stocks.
- uncertainty concerning the yield of winter wheat in Europe because of heavy frost.
Resistance:
- transit stocks have reached historic maximum at the end of marketing year
- expectation of record yield, which will satisfy the demand.
- seasonal price drop.
According to Commodity Trading of , until new fundamental data is issued, the prices are going to be traded within the current trend.
