Minneapolis Grain Exchange hard red spring wheat futures closed mostly lower on Thursday, with spreading and profit-taking weighing on nearby months, traders said. Most-active July wheat closed down 5-1/2 cents at $3.45-3/4 per bushel, with deferred months down 2 cents to up 2 cents.
ADM Investor Services and Country Hedging each sold 200 to 400 July contracts, traders said. Volume was estimated by the exchange at 7,094 lots.
Unwinding of the July/September spread was a feature. The spread closed at a one cent inverse as locals took profits, after trading out to a 5 cent inverse on Wednesday.
"It's not a case of huge selling. The bidder seems to be absent," one Minneapolis trader said.
Light hedges pressured values although cash movement was still fairly light. Traders noted hedge selling on Wednesday after the July contract reached $3.52.
In the southern US Plains, overnight showers slowed harvest of the hard red winter wheat crop, Meteorlogix weather service said. But drier and hotter weather this weekend through next week should boost harvest activity.
Weather in the spring wheat belt remained favorable for crop development, Meteorlogix said.
The weather service also said light showers were expected in eastern Australia's wheat belt this weekend and on Monday, easing concerns about dry conditions.
The US Department of Agriculture reported export sales of US wheat last week at 335,900 tonnes, near the low end of a range of estimates for 300,000 to 500,000 tonnes.
Exports overnight included Japan's purchase of 106,000 tonnes of wheat, with 61,000 tonnes coming from the United States.
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