Spring wheat futures on the Minneapolis Grain Exchange closed lower in an abbreviated pre-holiday session on Wednesday as funds liquidated long positions, traders said.
"It was nothing huge, but we probably took another 500 (contracts) out of the December," one trader said. Funds were also rolling December long positions forward ahead of first notice day for deliveries on November 30.
MGE December wheat ended down 1/2 cent at $3.62 per bushel but stayed within on Tuesday's range. March closed down 1-3/4 at $3.64-3/4 after falling to a two-month low at $3.62-1/2, a double-bottom on the contract's chart.
Commercial pricing by millers and exporters underpinned March, traders said. Volume was estimated by the exchange at 6,078 contracts, down from 10,482 on Tuesday.
Funds have been heavily net long in Minneapolis and Kansas City, leaving those markets opens to long liquidation. US markets will be closed on Thursday for the US Thanksgiving Day holiday.
Grain markets in Minneapolis, Chicago and Kansas City will close again on Friday. Overnight export activity was routine. South Korean flour millers bought 21,500 tonnes of US No 1 wheat from Columbia Grain International Inc, while Korea flourmill's Co Ltd bought 18,800 tonnes of US No 1 wheat from Toepfer.
Also, Tunisia issued a tender to buy 125,000 tonnes of milling wheat and 100,000 tonnes of feed barley. Private forecaster Meteorlogix said dry weather would persist in the southern US Plains hard red winter wheat belt through the weekend, but some much-needed rain and snow was expected to move on Sunday.
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