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US wheat futures fell on Friday on spillover pressure from a drop in the soyabean market, traders said. The Chicago Board of Trade March soft red winter wheat futures contract closed down 3-1/4 cents at $5.35-1/2 a bushel while the May contract dropped 3-1/4 cents to $5.48-1/4 a bushel.
CBOT trading was choppy as short covering pushed the market higher early in the session. Funds sold 2,000 lots. The Kansas City Board of Trade March hard red winter wheat contract ended down 1/2 cent at $5.74-1/2 per bushel, with KCBT May down 1 cent at $5.83-3/4 a bushel.
Minneapolis spring wheat for March delivery was down 3-1/2 cents at $6.35-1/2 a bushel while MGE May wheat fell 3-1/2 cents to $6.23-1/2 a bushel. Chicago volume was estimated at 57,674 futures and 14,392 options. In Kansas City, an estimated 15,091 futures traded. Minneapolis volume was seen at 3,623 futures. China needs no big foreign wheat buys on drought because of adequate reserves.
Taiwan flour millers to tender for US wheat on Thursday. Israeli firm buys 40,000 tonnes wheat. Snowfall in US Plains HRW wheat region helping replenish soil moisture northern Kansas, Nebraska and Colorado, buoying crop prospects. Drier portion of wheat belt, western Kansas to west Texas will remain dry.

Copyright Reuters, 2009

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