SOFTS – Midday Commentary – Aug 3,2009

WEAKER DOLLAR BOOSTS KC WHEAT
Weakness in the U.S. dollar continues to drive Kansas City wheat futures higher today, sending prices through but stops and through technical resistance, according to traders.  Strength in outside markets, and a rally in corn and soybeans in continuation from last week also supported wheat prices, traders added.
Kansas City wheat opened higher above last week's high and moved through July highs, traders said.  With the first of the month, new money was also coming into the market.
USDA weekly wheat export inspections were estimated at 13.5 million bushels, and within expectations of 13 to 16 million bushels.
KC Sep wheat was 20 ½ cents higher at $5.79 ¾ at midday.
CASH GRAIN:  The basis feels sluggish, possibly defensive, and bids are weaker, traders said.
:KCBT wheat volume/open interest for July 31
     In contracts
  Wheat     Volume     Exchs     Open-Int     Change
Sep-09         7352       974           35907         -847
Dec-09         4219            0          40450        +337
Mar-10            474         50             7693           +21
May-10           172           0             1246           +33
Jul-10              396          0            10598       +137
Sep-10              11           0                206           +3
Dec-10           127            0             1694       +107
Mar-11               0            0                   0             +0
May-11               0            0                    0            +0
Jul-11                 8             0              122            +5
Sep-11                0            0                  0            +0
TOTAL        12759      1024        97916          -204

Provided by:KCBT