Chicago Board of Trade wheat futures fell hard early on Thursday, reacting to a bigger-than-expected US winter wheat crop estimate released by USDA before the open, traders said.
At 10:35 am CDT (1535 GMT), CBOT wheat was down 5-1/2 to 9-1/2 cents per bushel, with July down 8-1/2 at $3.51-1/2.
Locals were noted sellers while Cargill Investor Services and R.J. O'Brien each sold at least 500 July.
USDA, in its June production report, pegged 2004 US winter wheat production at 1.531 billion bushels, above an average analyst estimate for 1.518 billion.
US old-crop wheat end stocks were put at 541 million bushels, above estimates for 525 million. And new-crop carryout was at 495 million, above estimates for 478 million.
Chartists pointed to the oversold posture of the market. The nine-day relative strength index for July stood at 34 ahead of the open and fell to 26 by midsession, below the benchmark 30 level considered an oversold market.
CBOT open outcry markets will be closed on Friday to observe a national day of mourning for former US President Ronald Reagan. But the e-cbot session will be open Thursday night and close at its regular time of 6 am on Friday.
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