Soft red winter wheat futures on the Chicago Board of Trade closed lower on Friday on light profit-taking after Thursday's higher close, traders said. Spillover weakness from declines in corn and soybeans added pressure.
The wheat market was lacking bullish fundamental news, and analysts said Thursday's advances were due mostly to end-of-the-month positioning by commodity funds.
December wheat closed down 2 cents at $5.00 per bushel, unchanged from a week ago. Most-active March ended down 3/4 cent at $5.20-3/4, up 1-3/4 cents for the week, and back months closed down 1 to 5 cents.
Funds bought 1,000 contracts, traders said. Trade was choppy, with prices turning firm at times, and the September 2007 contract hit a contract high. But the market's inability to hold modest gains served as a weak technical signal.
Heavy deliveries totalling 1,974 lots weighed on spot December, underscoring the weak cash market for soft red winter wheat. A Banc of America customer issued 1,500 lots, and there were scattered stoppers.
Overnight export news was routine, offering little support for futures. Taiwan's Flour Mills Association sealed a deal to buy a total of 44,100 tonnes of US wheat.
Kansas City Board of Trade March wheat closed down 4-3/4 cents at $5.45-1/2 and Minneapolis Grain Exchange March spring wheat ended down 1-1/2 at $5.28-1/2.
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