Wheat futures on the Chicago Board of Trade closed lower on Thursday, retreating from early gains on sluggish US exports and on profit-taking, traders said.
Corn futures supplied early leadership, rising after a strong weekly corn export sales figure. But as corn backed off its highs at midmorning, wheat faded. CBOT wheat closed 2-1/2 to 14-1/4 cents per bushel lower, with December down 12-3/4 cents at $4.68-3/4.
Volume was estimated at 78,488 futures and 16,920 options. The US Department of Agriculture reported export sales of US wheat last week at 323,100 tonnes, within the range of trade estimates for 250,000 to 450,000 tonnes. But accumulated US wheat exports to date and total commitments to date were down 19 percent from a year ago, the government said.
Wheat had underlying support from concerns about the new US winter wheat crop, with dry weather threatening hard red winter wheat in the Plains and cold, wet conditions slowing the growth of soft red wheat in the Midwest.
Private forecaster Meteorlogix said the Plains would stay mostly dry for the next week to 10 days. "It's going to be a warm and dry week next week, and this is going to further deplete soil moisture in the areas that we're most concerned about," Meteorlogix forecaster Mike Palmerino said, referring to Oklahoma and the Texas Panhandle.
The Midwest SRW belt should turn dry next week, but saturated soils will stay muddy because it won't be cold enough to freeze the ground, Palmerino said. Overnight exports were in routine. Japan bought 125,000 tonnes of wheat at its weekly tender, as expected, including 65,000 tonnes of US origin, 40,000 tonnes from Canada and 20,000 tonnes from Australia.
European customs data showed UK wheat exports from July through September were down 25 percent from the same period last season. CBOT December wheat closed below its 50-day moving average of $4.69, a bearish technical signal.
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