Wheat Futures Closed Mixed on Friday, Marking Nearby Contract Closed Higher

Wheat futures closed mixed on Friday, marking the first time in seven weeks a nearby contract closed higher than the previous week. Stronger export demand for U.S. supplies combined with cold temperatures that threaten winter wheat conditions supported futures. Ample global supplies continue to weigh heavily on the market and limited overall gains. CBOT March wheat, which hit its lowest point in 3 ½ years earlier in the week, added 2 cents to close at $5.65/bu. KCBT added 4 cents to $6.27/bu and MGEX dropped 5 cents to $6.13/bu. CBOT March corn gained 6 cents to $4.30/bu and CBOT March soybean fell 32 cents to $12.85/bu. Extremely cold weather in the Midwest threatens to damage the dormant winter wheat crop and supported futures this week but the extent of the damage, if any, will not be apparent until the crop emerges in the spring. According to USDA, weekly net sales of 421,400 MT for delivery during the 2013/2014 marketing year were up 32 percent from the previous week and 34 percent from the prior 4-week average and within trade expectations of 300,000 to 600,000 MT. Total known outstanding sales and accumulated exports through January 16, 2014 were 25.3 million metric tons (MMT), 24 percent greater than last year's year-to-date total of 20.4 MMT. USDA forecasts 2013/14 U.S. wheat exports (including donations) to reach 30.6 MMT. The Baltic Panamax Index fell from 1,564 last week to 1,437. Freight activity is slowing down ahead of the Chinese New Year and an oversupply of vessels continues to pressure the index. The US Dollar Index declined from 81.36 last week to 80.73.