Ags – Midday Commentary – Aug 28,2009

KC WHEAT CONTINUES LOWER TREND
Kansas City wheat futures traded lower this morning, driven by continued talk of large world wheat production, according to traders.  Despite any small bullish stories that are out there, the market is reflecting the huge world wheat production numbers, traders added.  The International Grains Council released a larger production number over July yesterday, traders said.
There are some reported problems in dry wheat areas of Australia, traders said, but not enough to move the market higher.  Chicago wheat continues to hold a large number of short positions, traders said.
KC Sep wheat was 9 cents lower at $4.99 1/2 at midday, finding some support in the $5.00 area. 
CASH GRAIN:  The basis feels stable, and is rolling to the December contract.  Lower proteins feel stable going into September, traders said.
:KCBT wheat volume/open interest for August 27
     In contracts
  Wheat     Volume     Exchs     Open-Int     Change
Sep-09         6440      1416            5210        -2442
Dec-09       10334        981          62767           +38
Mar-10          1222         15           11936        +394
May-10            304           0             2158         +173
Jul-10              292           0           11739            -67
Sep-10              14           0               682             +4
Dec-10           323            0            7492         +222
Mar-11                0           0                   0              +0
May-11               0            0                  0              +0
Jul-11               12            0              144            +10
Sep-11               0             0                  0              +0
TOTAL        18941      2412       102128        -1668

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