CBOT Wheat Market Recap Report for 3/23/2009

Wheat opened higher along with corn and soybeans this morning with traders crediting the early strength to fears of stepped up inflation. This played out in outside markets with a lower dollar and higher crude oil, although the stock market was sharply higher. Funds were buyers of 2000 contracts through late morning, but prices sagged into early mid session and then made new lows on the day prior to the close. Wheat lost marginally to corn in light trade by spreaders. Heavy rain is expected tomorrow and into mid week in the western soft red wheat belt and scattered rains of up to 1 inch are forecasts in dry areas of the western and southern Plains at the end of the week. The 6-10 day forecast is for drier than average in drought-affected areas of the Plains. This week's export inspections were 22.4 million bushels in wheat, up sharply from last week's total of 12.7 million. Inspections need to average 14.6 million bushels each week to reach the USDA's projection.