Hard red winter wheat futures at the Kansas City Board of Trade ended mostly lower on Monday, following losses in Chicago wheat futures, traders said.
Wheat prices rallied early but quickly began to adopt an easier tone, leaving December wheat down 3 cents at $5.18 per bushel after rising as high as $5.30, and March down 1-1/4 cents at $5.36-1/2 after climbing to $5.50. New-crop July wheat rose to a new high of $5.15-1/2 in the early surge before settling 3/4 cent lower at $5.08-1/4.
Among featured players, J.P. Morgan bought 1,000 March, sold 300 March and spread 800 December/March from 16-3/4 to 17 cents, while also spreading 400 the other way from 16-1/2 to 17 cents. ADM spread 1,000 March/December, while Man Financial bought 500 December, 300 July and traded 700 March outright and sold 500 December and 350 July, and Prudential bought 1,000 March and sold 300 December and 600 March and 200 July, floor sources said.
Chicago Board of Trade wheat futures led declines, sliding sharply on long liquidation ahead of first notice day on Thursday for the December wheat contract. There was also some positioning in Kansas City, but traders said volume was moderate.
Gains in corn and soybean futures provided some support for KCBT wheat. Also, dryness in the US Plains HRW wheat belt remained supportive, as did similar concerns in China.
China sold 1.08 million tonnes of wheat from state reserves over the weekend in an effort to boost supplies and help ease rising domestic prices, the government said Monday. Weekly export inspections of US wheat totalled 13.5 million bushels, at the low end of trade expectations for 13 million to 19 million bushels.
In world wheat news, the Egyptian government expects farmers to plant 3.1 million acres (1.25 million hectares) with wheat this season, about the same as last season, state news agency MENA reported on Saturday.
The nine-day relative strength index for the March contract stood at 54 after Monday's closing bell. Chart-watchers consider 30 and below a sign of an oversold market and 70 and above indicative of an overbought market.
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