Home / Markets / Markets Analysis / Near limit up CBOT wheat trade boosts corn, soy

Near limit up CBOT wheat trade boosts corn, soy

Agriculture.com Staff 04/13/2007 @ 9:58am

The Chicago Board of Trade wheat complex was trading nearly limit up on Friday morning, as funds and commercials bought close to 7,000 contracts.

At 11:00 AM, the CBOT May wheat contract was trading 17 1/2 cents higher at $4.75 1/2. The CBOT May corn was up 7 1/4 cents, and the May soybean contract up 2 3/4.

"This wheat market is going crazy ahead of the weekend," said Noel Blue, a CBOT floor broker and analyst. "I agree with this bullish attitude in wheat."

Also, the uncertainty of the crop damage this week to the hard red winter wheat is driving the market up," Blue said.

"I don't think people are going to wait to see how this wheat came out of this frost," Blue said. "I think people are going to buy this market now."

Wheat producers in the South have reported finding ice formed inside wheat stems, according to media reports.

In addition, an Israeli private buyer announced a wheat tender for an undisclosed amount for a really aggressive price out of the Black Sea region yesterday. "That is starting to make people take notice," Blue said.

"How much more are people going to be willing to pay? At this point, why even try to target the upside, scale longs would be my favorite," Blue said.

The Chicago Board of Trade wheat complex was trading nearly limit up on Friday morning, as funds and commercials bought close to 7,000 contracts.

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