CBOT wheat futures mixed in rangebound trade

Wheat futures at the Chicago Board of Trade closed mixed in rangebound trade on Wednesday, as pressure from beneficial moisture in the US Plains offset spillover strength from the corn market, traders said. Buyers were scarce. Funds bought about 1,400 wheat contracts on the day, traders said, but were more active in rallying corn and soybeans. CBOT July wheat closed down 1/4 cent at $3.31-1/2 per bushel. Deferred months were down 2 cents to up 1 cent.
Volume was estimated by the exchange at 31,394 futures, down from 56,303 on Tuesday, and 11,920 options. The July contract had support at $3.28-1/2, its low for the previous two sessions, and resistance at $3.39-1/2.
Weekly crop updates from the US Department of Agriculture were a mixed bag for wheat. 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.
But traders said next week's crop ratings would better reflect the impact of the recent moisture.
Also, rains expected in the US Midwest this weekend could benefit the region's soft red winter wheat, Gidel said. USDA's ratings for SRW wheat were mixed. In Illinois, 64 percent of the crop was rated good to excellent, down 6 points, while in Ohio, 79 percent rated good to excellent, up 1 point. 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.
Spring wheat 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. 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.