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Export sales market reaction expected

Agriculture.com Staff 11/28/2007 @ 1:13pm

CHICAGO, Illinois (Agriculture Online)--Bullish news from Argentina temporarily shutting down exports due to scares of frost crop damage, and poor crop ratings for U.S. southwest helps CBOT wheat finish limit up on Wednesday. Also, a move over the 50-day trading moving average created a technical correction.

On Wednesday, Matt Pierce, Futures International, LLC floor trader says people were caught short wheat/long corn and soybeans.

"All of those people blew out of their positions early in the session. Once we caught the pit short, the game was over. We went limit up pretty easy."

The CBOT Mar wheat futures contract finished the limit up mark of 30 cents at $8.51 3/4. The synthetic trading finished 6 cents above and beyond the limit-up price.

On Thursday, the wheat market will react to the weekly export sales report to be released at 7:30 am CST. Trade expectations for net wheat export sales is between 400,000-550,00 metric tons, Pierce says.

"If we go above that number, you'll see more upside momentum. Also, if crude oil and gold prices level off overnight, those will be key factors for tomorrow's trade," Pierce says.

Meanwhile, though the wheat complex has been the leader in trade this week, corn and soybeans could regain the lead role with a strong export sales report on Thursday, Pierce says.

"With export expectations for corn and soybeans well over 1.0 million tons, they could be the leaders Thursday." Pierce says.

CHICAGO, Illinois (Agriculture Online)--Bullish news from Argentina temporarily shutting down exports due to scares of frost crop damage, and poor crop ratings for U.S. southwest helps CBOT wheat finish limit up on Wednesday. Also, a move over the 50-day trading moving average created a technical correction.

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