CBOT wheat futures lower

Wheat futures at the Chicago Board of Trade settled mostly lower on Monday on technical selling, but late short-covering lifted prices up from session lows, traders said.
Bearish US wheat production data in Friday's USDA August crop reports continued to drag on prices, along with some welcome rains in the southern US Plains ahead of planting. Values firmed toward the close, with spot September wheat ending higher on the day. "We don't have the big longs bailing out, like in Kansas City and Minneapolis, so the pit got a little short," one CBOT floor trader said. Intermarket spreading also helped Chicago wheat gain against the Kansas City and Minneapolis markets.
CBOT September wheat settled 1/4 cent higher at $3.74 per bushel after trading between $3.69-3/4 and $3.75-1/2. December ended down 1-1/4 cents at $3.94-1/4 and deferreds were down 1/2 to 5 cents. Volume was estimated by the CBOT at 81,168 futures, down from 107,230 on Friday, and 14,857 options.
Funds sold about 4,000 contracts in Chicago, 3,000 in Kansas City and 1,700 to 2,000 in Minneapolis, traders said. KCBT December wheat ended down 11 cents at $4.61-3/4 and Minneapolis December spring wheat settled down 8-3/4 at $4.59.
Rainfall totals in Kansas on Sunday and early Monday ranged from 1/2 to 1 inch, with the National Weather Service reporting more than 2 inches in a few locations. Kansas is the largest US wheat producer.
Traders also noted improving weather conditions in Argentina. The Buenos Aires Grain Exchange said rains early this month have raised expectations for wheat production, with planting 95.5 percent complete.
News that Egypt bought US and Canadian wheat over the weekend underpinned prices. Egypt's GASC bought 110,000 tonnes of wheat, including 55,000 tonnes of US soft red winter wheat.
But weekly export data did little to lift futures. The US Department of Agriculture reported export inspections of US wheat last week at 14.3 million bushels, below a range of trade estimates for 15 million to 20 million.
The market continued to digest bearish data in the USDA's August supply/demand reports. The government on Friday put the US all-wheat crop at 1.801 billion bushels, above the average trade guess of 1.762 billion.
USDA put the hard red spring wheat crop at 423 million bushels, nearly unchanged from its July estimate of 425 million despite scorching weather in the northern US Plains.
Friday's CFTC Commitments of Traders report showed large speculators expanded their net long position in CBOT wheat futures for the week ended August 8. The report showed funds reduced their heavy net long stance in Kansas City and Minneapolis wheat.