Softs – Midday Report – July 20,2009

WHEAT FAILS TO FOLLOW THROUGH ON STRENGTH
Kansas City wheat futures opened higher this morning on strong outside markets and weakness in the U.S. dollar, according to traders.  Crude oil was also trading lower, traders said.  Huge speculative short positions reported out of Chicago also influenced the higher trade, traders added.
Some small buy stops were hit early in the market after breaking last weeks highs, traders said, but brought no real follow through.  KC wheat traded near unchanged to lower at midday in light volume.
KC Sep was 2 cents lower at $2.64 ½ at midday.
CASH GRAIN: The basis feels heavier again today with a lot of cars in the market and mill pipelines full, traders said.  Higher proteins are feeling pressure from new crop wheat coming out of South Dakota, traders added.
:KCBT wheat volume/open interest for July 17
     In contracts
  Wheat     Volume     Exchs     Open-Int     Change
Sep-09         8014       1602        40982           -236
Dec-09         4168         104        36322           +807
Mar-10            764           50          6128           +200
May-10              52            0           1261              -11
Jul-10              172            0         10591            +66
Sep-10                4             0             224              +0
Dec-10              12             0           1238               -2
Mar-11                0              0                 0              +0
May-11                0             0                  0              +0
Jul-11                  4             0             126               -4
Sep-11                0             0                 0               +0
  TOTAL      13190      1756        96872           +820

Provided by:KCBT