Late and light commercial buying in thin trading buoyed Chicago Board of Trade soft red winter wheat futures to a mostly firm close on Tuesday, traders said.
Pit sources said some buying surfaced when the December contract held above support at its 20-day moving average of $3.10-1/4 per bushel. Wheat closed 1/2 cent per bushel lower to 2-1/4 higher, with December down 1/2 cent at $3.15-1/2 per bushel.
However, traders and analysts said attempts to rally wheat futures continued to be hampered by the record-large world wheat output this year and good conditions for sowing the 2005 US wheat crop.
The US Department of Agriculture late on Monday said 76 percent of the US winter wheat crop was in good to excellent condition as of Sunday. The crop is being seeded amid much better soil moisture levels than a year ago, when the crop was rated 53 percent good to excellent at this time.
USDA said 85 percent of the crop had been planted, compared with 78 percent a week ago and equal to the seeding pace a year ago. Showers this week in some of the drier wheat growing areas in Australia also may weigh on wheat futures prices.
Exports were quiet overnight and traders were eyeing a potential sale of US wheat to Pakistan, which may buy wheat later this week. Trade sources have said Pakistan may initially buy up to 500,000 tonnes.
Cash basis bids in the Midwest were steady to firm and farmer selling remained Very light.
Technicals were near neutral levels and support in the December contract was at $3.08 per bushel, with resistance at $3.18.
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