CBOT wheat futures mixed

Soft red winter wheat futures on the Chicago Board of Trade closed mixed on Monday, but gained ground on corn and soybeans amid talk of rain-related harvest delays in the US Plains and Midwest, traders said.
"We had enough rain around in Kansas to reduce some of the harvest pressure over the weekend. And the fact that the Egyptians bought some wheat from us is somewhat encouraging. We haven't seen that in some time," said Jerry Gidel, an analyst with North America Risk Management Services Inc.
Egypt's General Authority for Supply Commodities on Saturday bought 175,000 tonnes of US wheat and 55,000 tonnes of Canadian wheat. It was Egpyt's first US wheat purchase since April.
Traders said the Egyptian business underscored how recent declines in CBOT wheat futures have drawn exporter interest. Seasonal harvest pressure has knocked front-month July wheat down more than 70 cents a bushel from contract highs set in late May.
CBOT July wheat closed down 1/2 cent at $3.58-1/2 per bushel, after trading in a range between $3.56-1/2 and $3.62. Deferred months were down 1/2 to up 1-3/4 cents.
Spillover pressure from a late drop in corn pulled down the front months in wheat.
Funds were net buyers of 1,000 to 2,000 wheat contracts, traders said. Light wheat/corn spreading added support. The CBOT estimated Volume at 53,050 futures and 7,837 options, compared with 61,509 futures on Friday.
CBOT wheat was oversold and due for a bounce, with nine-day RSI for July holding at 25 by the close. Chartists view an RSI of 30 or lower as indicating an oversold market. Traders noted support at the contract's April low of $3.51.
After the market closed, the US Department of Agriculture reported the US winter wheat harvest at 38 percent complete, well ahead of the five-year average of 21 percent.
The USDA also reported a decline in spring wheat condition ratings. The agency said 60 percent of the US spring wheat crop was rated good to excellent, down from 67 percent the previous week.
Weekly export inspections data was neutral. The USDA put export inspections of US wheat last week at 14.4 million bushels, within a range of trade estimates for 12 million to 17 million bushels.
Export traders expected India to open bids on its 2.2-million-tonne tender on Tuesday. Meanwhile, Australia was close to resolving a dispute with India over contract specifications in a $90 million wheat deal from a previous Indian tender.
Friday's CFTC Commitments of Traders report showed large speculators reduced their net long position in CBOT wheat futures for the week ended June 13. Open interest in CBOT wheat also dropped sharply, reflecting fund long liquidation.