Wheat futures at the Chicago Board of Trade closed lower on Wednesday, with traders citing profit-taking after Tuesday's rally and positioning ahead of monthly crop reports from the US Agriculture Department. CBOT May wheat ended down 6-1/2 cents at $3.06 per bushel, with July down 7-3/4 at $3.13-3/4, near the day's low of $3.13-1/4. Volume was light, estimated by the exchange at 22,076 futures and 5,539 options. The average estimate for US 2005/06 winter wheat production among analysts polled by Reuters was 1.556 billion bushels, above last year's output of 1.499 billion.
The analysts pegged US old-crop wheat ending stocks at 542 million bushels, up from 541 million in April. New-crop wheat ending stocks were forecast at 574 million.
Funds were small net sellers, CBOT traders said, playing a diminished role after rallying the wheat market on Tuesday.
Wetter forecasts for the US Plains winter wheat belt also pressured futures, traders said.
The Meteorlogix weather service on Wednesday said showers might develop this week in the region. However, the longer range outlook remained drier and sometimes hotter than normal, Meteorlogix said.
Lackluster exports and adequate global supplies of wheat were bearish. But futures had underlying support from declining condition ratings for the US winter wheat crop.
Deliveries on the CBOT May contract for Wednesday were light at 75 lots and there was scattered stopping. Registrations with the CBOT were unchanged at 898 lots.
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