Hard red winter wheat futures on the Kansas City Board of Trade closed lower on Thursday in a profit-taking setback after Wednesday's limit-up rally, traders said. KCBT July wheat fell 14-1/4 cents to settle at $8.92-1/4 per bushel, with back months down 13 to 20-3/4 cents. Volume was estimated at 27,297 contracts.
Early weakness in the crude oil and gold markets, along with a rebound in the US dollar, added to bearish sentiment in the commodities sector. Wheat traders continued to watch the Chicago corn market, which hit new highs for a sixth straight day on flooding in the US Corn Belt. However, corn eased off its highs by the close, sparking a sell-off in wheat. Strength in corn this week has lifted wheat futures, helping the market to shrug off seasonal harvest pressure.
Daily trading limit at KCBT, CBOT and MGE widened to 90 cents per bushel on Thursday. The limit reverts to 60 cents for Friday. Storms raked the Plains HRW belt on Wednesday with strong winds and hail that likely caused scattered crop damage, traders said. Rains disrupted the HRW harvest in Oklahoma and the southern fringe of Kansas. After the close, Egypt tendered to buy 55,000 to 60,000 tonnes of optional-origin wheat for shipment July 11-31. Tender results were expected on Friday.
French analyst Strategie Grains ups 2008 grain forecasts on weather. USDA reported export sales of US 2008/09 wheat in the latest week at 335,100 tonnes, above trade estimates for 150,000 to 250,000 tonnes. A total 1,423,600 tonnes was carried over from the 2007/08 marketing year that ended on May 31.
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