Minneapolis Grain Exchange spring wheat futures closed lower on Wednesday, with improved US spring wheat ratings keeping a lid on values, traders said. MGE July wheat ended down 1/2 cent at $3.49 per bushel, with deferred months down 1-1/4 to 1-1/2 cents. Volume was estimated by the exchange at 5,162 contracts, up from 4,749 on Tuesday. Spreading was a feature, with 800 to 1,000 July/September spreads traded between 7 and 6-1/2 cents, traders said. ADM Investor Services was the featured seller while Country Hedging was the main buyer, traders said.
Traders said a decline in spring wheat stocks at the Duluth/Superior terminal underpinned the spot July contract. The exchange reported deliverable spring wheat stocks at the terminal at 13.7 million bushels as of May 27, down from 15.1 million a week ago.
The US Department of Agriculture said late Tuesday that spring wheat crop condition ratings improved in the northern Plains. USDA said 77 percent of the US spring wheat crop was rated good to excellent, up from 74 percent the previous week.
USDA said 97 percent of the crop was planted, ahead of the five-year average of 94 percent.
USDA said 48 percent of the US winter wheat crop was rated in good to excellent condition, down from 52 percent the previous week despite rains in dry areas of the Plains.
The expansion of the winter wheat harvest was a bearish seasonal factor, although last week's rains slowed early progress in the southern Plains. USDA said the HRW harvest was 8 percent complete in Texas, compared with the state's five-year average of 16 percent.
In Arkansas, the SRW wheat harvest was 3 percent complete, matching the state's five-year average.
Export business overnight was quiet. Strength in the US dollar was bearish, making US grains more expensive for foreign buyers.
China's government said the country will produce 480 million tonnes of grain this year, if it gets good weather, 2.3 percent more than in 2004 but still less than demand.
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