CBOT Wheat Market Recap Report for 3/16/2009

The wheat market went from follower to leader among the grain markets to day as buying by funds and by spreaders against corn helped to lift the May wheat contract to well past 600 to the highest levels in nearly 5 weeks. Funds were buyers of at least 4000 contracts through late morning, and traders said that this helped to trigger commission house buy stops amid moderate volume. Weather, a higher dollar and a higher stock market were also said to add to the support today. Wheat gained very sharply on corn today in active trade by spreaders and the May contract finished near the highs of the day. Rain missed western Kansas and NW Oklahoma and much of Nebraska late last week and over the weekend, and amounts were also light in the Texas Panhandle. Forecasts call for hot and dry conditions for the remainder of this week and possibly into the weekend. Export inspections for wheat were 12.6 million bushels this week versus 14.575 last week. This was below trade expectations. Total inspections to-date stand at 82.1% of the projected total for the marketing year compared to a 5-year average of 77.5%. Inspections need to average 15.3 million bushels to reach the USDA's projection.