November 16 US Wheat Daily Commentary: Weaker Dollar Drives Wheat Sharply Higher
November 16 US Wheat Daily Commentary: Weaker Dollar, Wheat Surges
On November 16, the three US wheat futures markets closed sharply higher, hitting their highest levels since early August, mainly due to a weaker dollar and a large influx of funds into the commodity markets.
The CBOT December contract rose 23.25 cents to close at 562.25 cents per bushel.
The KCBT December contract rose 19.75 cents to close at 560.25 cents per bushel.
The MGE December contract rose 18.50 cents to close at 574.25 cents per bushel.
Analysts said the wheat market closed near session highs as the US dollar fell sharply, hitting its lowest level since August 2008. The CBOT December contract rose as high as $5.64 during the session, the highest point since October 23.
The CBOT December wheat contract's closing price hit its lowest point since August 4. Analysts said the December contract closed above its 200-day moving average, which is extremely bullish for the outlook. However, for now the wheat market's technical picture is already severely overbought.
International crude oil futures strengthened, precious metals surged, and the neighboring corn and soybean markets soared across the board, which likewise boosted bullish sentiment in the wheat market.
Commodity funds bought 5,000 contracts in the CBOT soft red winter wheat market.
Analysts said that as of the close on November 16, the CBOT December contract had risen 68 cents so far this month.
According to the latest position report released by the US Commodity Futures Trading Commission, as of November 9, non-commercial investment funds still held a net short position in the CBOT wheat market, leaving the market highly vulnerable to short covering. Funds currently hold a net short position of 35,144 contracts, up from 33,477 contracts a week earlier.
In the KCBT hard red winter wheat market, the market closed at its highest point since August 5. The session high was $5.62, also the highest level since October 23.
The MGE spring wheat market's December contract closed at its highest level since August 12, with a session high of $5.75, also the highest level since October 23.
Wheat market prices have risen sharply recently, even though global wheat ending stocks are large and US wheat export demand is sluggish. Weekly export inspection data fell within the expected range. According to the US Department of Agriculture, US wheat export inspections for the week ending November 12 totaled 15.047 million bushels.
Because of abundant global wheat supplies, US wheat export sales have faced strong competitive pressure this year. The recent surge in wheat prices has noticeably weakened the export competitiveness of US wheat.
The CBOT December contract rose 23.25 cents to close at 562.25 cents per bushel.
The KCBT December contract rose 19.75 cents to close at 560.25 cents per bushel.
The MGE December contract rose 18.50 cents to close at 574.25 cents per bushel.
Analysts said the wheat market closed near session highs as the US dollar fell sharply, hitting its lowest level since August 2008. The CBOT December contract rose as high as $5.64 during the session, the highest point since October 23.
The CBOT December wheat contract's closing price hit its lowest point since August 4. Analysts said the December contract closed above its 200-day moving average, which is extremely bullish for the outlook. However, for now the wheat market's technical picture is already severely overbought.
International crude oil futures strengthened, precious metals surged, and the neighboring corn and soybean markets soared across the board, which likewise boosted bullish sentiment in the wheat market.
Commodity funds bought 5,000 contracts in the CBOT soft red winter wheat market.
Analysts said that as of the close on November 16, the CBOT December contract had risen 68 cents so far this month.
According to the latest position report released by the US Commodity Futures Trading Commission, as of November 9, non-commercial investment funds still held a net short position in the CBOT wheat market, leaving the market highly vulnerable to short covering. Funds currently hold a net short position of 35,144 contracts, up from 33,477 contracts a week earlier.
In the KCBT hard red winter wheat market, the market closed at its highest point since August 5. The session high was $5.62, also the highest level since October 23.
The MGE spring wheat market's December contract closed at its highest level since August 12, with a session high of $5.75, also the highest level since October 23.
Wheat market prices have risen sharply recently, even though global wheat ending stocks are large and US wheat export demand is sluggish. Weekly export inspection data fell within the expected range. According to the US Department of Agriculture, US wheat export inspections for the week ending November 12 totaled 15.047 million bushels.
Because of abundant global wheat supplies, US wheat export sales have faced strong competitive pressure this year. The recent surge in wheat prices has noticeably weakened the export competitiveness of US wheat.