US wheat futures fell on Thursday as forecasts called for favorably dry weather for harvesting next week in the southern Plains hard red wheat belt, traders said. Front-month July K.C. hard red winter wheat futures dropped below $5 a bushel for the first time since June 1. MGEX July spring wheat also fell to a 2-1/2 week low, with beneficial rains in the Canadian Prairies easing concerns about dry conditions.
Chicago Board of Trade wheat fell but the market was underpinned by fund short-covering and a weaker dollar, which makes US wheat more competitive on the world market. The dollar index sagged a day after the Federal Reserve signalled that interest rates would rise more slowly than many had expected. CBOT losses were also limited by excessive rains in the southern Midwest soft winter wheat belt that should slow the harvest and threaten grain quality.
USDA reported export sales of US wheat in the latest week at 315,700 tonnes for 2015/16, in line with trade expectations. Consultancy Strategie Grains lowered its outlook for European Union soft wheat exports in 2015/16 for the second month in a row, expecting strong competition from the Black Sea region and lower Middle East import needs.
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