Ags – Midday Report – Sept 16,2009

PROFIT TAKING IN KC WHEAT FUTURES
Yesterday's rally and short-covering activity led to a some retracement and profit taking in Kansas City wheat futures this morning, traders said.  The feature of the morning session was a bullish spread in the options pit, causing some locals to buy into the futures to cover their positions and bring underlying support to KC prices, traders added.  Flat price futures trade was mostly quiet, traders added.
Yesterday's rally in grains was sparked by threats of colder weather in the corn belt.  The forecast looks less threatening today, allowing the markets to back off of yesterday's highs, traders said. 
KC Dec wheat was 2 3/4 cents lower at $4.79 1/2 at midday.
CASH GRAIN:  The basis feels steady, with some cars around and some yet to be bid on, according to traders.
:KCBT wheat volume/open interest for September 14
     In contracts
  Wheat     Volume     Exchs     Open-Int     Change
Sep-09               0              0                  1              +0
Dec-09       14200         871        61664        +1010
Mar-10         3116              1        19448         +1516
May-10           387            29         3938              +67
Jul-10             979             0        13663            +284
Sep-10             15              0             896                -6
Dec-10           809              0        11904           +411
Mar-11                0              0                 0               +0
May-11               0               0                0               +0
Jul-11                13              0            169               +1
Sep-11                0              0                0               +0
TOTAL        19519          901      111683       +3283

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