CBOT wheat futures fall to two-month lows

Wheat futures at the Chicago Board of Trade fell to two-month lows on Thursday on better crop weather in the US winter wheat belt, traders said.
Disappointing export sales data for US hard red winter wheat added pressure, and the Kansas City and Minneapolis markets led the way down.
CBOT May wheat closed down 5-1/4 cents at $3.44 per bushel, after falling below its 100-day moving average at $3.48-1/4. Deferred months settled down 2 to 5-3/4 cents.
Volume was moderate, estimated by the exchange at 45,380 futures and 14,513 options.
Funds net sold 4,000 contracts, traders said, with Iowa Grain a noted seller late in the session.
Kansas City Board of Trade May wheat closed down 9-1/2 cents at $4.07-1/2.
Recent moisture has improved crop prospects in the US Plains HRW production region, prompting traders to scale back the weather premium that rallied prices in January through early March.
Snow fell across Kansas, Oklahoma and the Texas panhandle on Wednesday, with accumulations ranging from a dusting to 2 to 3 inches. The snow followed a weekend storm that brought heavier precipitation to the area.
"We continue to be optimistic about the potential for the crop from here on forward, after the big precip event earlier this week. Now there's a potential for some follow-up moisture," Meteorlogix forecaster Mike Palmerino said, noting indications of another possible storm next week.
Soil moisture is adequate in the US Midwest soft red winter wheat region, although cool temperatures are slowing the new crop's growth.
The US Department of Agriculture reported weekly export sales of US wheat at 482,600 tonnes (old and new crop), within a range of trade estimates for 300,000 to 500,000 tonnes.
But sales of hard red winter wheat, which has been the top-selling class of wheat through the fall and winter, lagged at 67,300 tonnes (old and new crop). US hard red spring and white wheat accounted for most of the weekly total.
Export business overnight included news South Korea was seeking 14,500 tonnes of US wheat.
The nine-day relative strength index for May stood at 31 ahead of the open, and the market decline pushed the index down to 27 by the close. Chartists view an RSI of 30 or below as one sign of an oversold market.