Ags – Midday Commentary – Aug 26,2009

KC HIGHER ON TECHNICAL, NOT FUNDAMENTAL SUPPORT
Kansas City wheat futures traded higher this morning, driven by stronger technical signals in the market and disregarding weaker fundamental news, according to traders.  Egypt purchased 60,000 metric tones of U.S. SRW wheat, traders said, but at a relatively inexpensive price and wasn't looked upon as significant news, traders said.  The fact that Chicago is holding a large amount of short positions in the marketplace could cause another spurt of buying as seen in yesterday's session, traders said.  There was some buying in Kansas City in back months in screen trading, traders added.
CASH GRAIN:  The basis feels steady with a little continued pressure on the lower protein levels, according to traders.
:KCBT wheat volume/open interest for August 25
     In contracts
  Wheat     Volume     Exchs     Open-Int     Change
Sep-09          6090      1531        10057         -2536
Dec-09        11824          53        61831        +1517
Mar-10          1105         120        11420            +94
May-10            338             0          1984            +69
Jul-10            1336             0        11639             +8
Sep-10               51             0            681             +7
Dec-10           1957            0         7113        +1286
Mar-11                  0            0               0               +0
May-11                 0             0               0              +0
Jul-11                   4             0          136               +2
Sep-11                  0             0               0              +0
TOTAL          22705      1704      104861        +447

Provided by:KCBT