Chicago Board of Trade wheat futures closed mostly down on Wednesday after tumbling to eight-month lows earlier in the session on the latest plantings and stocks data from the US Department of Agriculture, traders said.
News Egypt bought French wheat and snubbed US offerings as well as steep slides in corn and soybean futures added pressure to the wheat futures market, they said.
However, the July contract turned firm near the close on scattered short-covering.
CBOT wheat closed 1/2 cent higher to 3 cents lower, with July up 1/2 at $3.38 and September down 1-3/4 cents at $3.45-1/2.
Volume was large estimated at 38,044 futures and 7,752 options.
USDA in its June plantings report issued Wednesday morning pegged US 2004 all-wheat acreage at 59.87 million, above the average analysts' estimate of 59.416 million.
The biggest surprise was US spring wheat acreage at 13.677 million, above the average trade estimate of 13.260 million, traders said.
USDA's quarterly stocks report showed the US wheat supply as of June 1 at 546 million bushels, above the average estimate of 537 million.
In overnight export business, Egypt's GASC bought 60,000 tonnes of French soft wheat and passed on buying US wheat.
Recent declines in US wheat futures prices has led to hopes for a sale of wheat to Egypt, but that country has recently bypassed the United States in favor of French wheat stocks.
Seasonal harvest pressure continued to hang over the market, and large deliveries of wheat against the July contract were bearish.
Wednesday was first notice day for deliveries on the July. There were 1,609 lots posted for delivery, at the high end of estimates of 500 to 2,000 lots. Registrations with the CBOT late Tuesday were unchanged at 2,100 lots.
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