Wheat Comment 10-21-09

Wheat Morning Update & Commentary In typical bi-polar wheat fashion, wheat traded almost 10 higher and 10 lower on the day, last ticked in positive territory, and settled by the exchange in negative territory. With the abundant supply of wheat world wide, and bearish fundamentals set firmly in stone, its no wonder why some traders are feeling frustration with the performance of the CBOT wheat contract. Increased volume in MPLS trade, could be the first sign that traders and hedgers are tired of being victims. In cash markets, Columbia Grain & United Harvest were both sellers of Wheat to a private Taiwan firm. Total wheat purchased was 73,840 mt. Japan also moved for 7,000 mt of feed wheat under the SBS system. Morocco, Bangladesh, and Iraq remain around the market for wheat. SRW Basis remains flat with a full pipeline overhanging the market. HRW has firmed as more buyers seem to be stepping into the market. PNW pipeline remains full despite the recent purchase by Taiwan. Concerns continue to mount over the affect of drought on Ukraine's newly planted wheat crop, but UkrAgroConsult says such claims are "pessimistic", as 70% of the crop remains in satisfactory condition.. Russia's ag ministry said as of Oct 20th 98.8 mln mt of grain had been harvested, 10% lower than last year's bumper crop. Grain harvest was also said to 91% complete. Iran, which was forced to import wheat last year, noted grain stocks in the country were at 14 mil tons, versus ...