CBOT wheat futures lower

Wheat futures on the Chicago Board of Trade closed lower on Monday, influenced by a sell-off in corn futures and a lack of supportive news, traders said. "It's technical weakness coming into the market, the lack of any new fundamental influences from the demand sector," Prudential Financial analyst Shawn McCambridge said.
Corn futures tumbled roughly 3 percent on a firmer US dollar and prospects for increased US corn seedings in 2007. December corn ended down 11-1/4 cents at $3.62-3/4 per bushel. CBOT December wheat settled 1/2 cent lower at $4.99-1/2 a bushel, with most-active March down 2-3/4 cents, or 0.5 percent, at $5.18.
Wheat prices came off the day's lows toward the close, rebounding in light volume. R.J. O'Brien was a late buyer of 300 March contracts while funds were even to small net sellers on the day, traders said.
Weekend export business was quiet, but the US Department of Agriculture on Monday reported that 20.2 million bushels of wheat were inspected for export last week. The figure was above trade estimates for 14 million to 18 million bushels.
However, the government pegged year-to-date wheat inspections at 422.3 million bushels, down 18 percent from a year ago. Private forecaster Meteorlogix said snow and rain in southern areas of the US Plains winter wheat belt helped recharge soil moisture, while temperatures were not cold enough to harm the crop.
Hard red winter wheat futures at the Kansas City Board of Trade settled down 1 to 9 cents, with most-active March down 8 cents at $5.37-1/2 per bushel. Continued heavy deliveries weighed on the CBOT December wheat contract. Delivery notices for Monday totalled 1,486 lots, and there was scattered stopping.
In world wheat news, France expects to triple its soft wheat sales to Tunisia to 500,000 tonnes in 2006-2007, from 150,000 tonnes a year earlier, due to short supply of cheaper Black Sea grain on the world market, a French industry official said.
Dry weather is helping speed the harvest of the Argentine wheat crop, the Buenos Aires Grains Exchange said. By Friday, Argentine farmers had gathered 33 percent of the 5.38 million hectares planted with the grain, nearly 10 points ahead of the year-ago pace.
Friday's CFTC Commitments of Traders report showed that large speculators slightly expanded their net long position in CBOT wheat futures in the week ended November 28. Funds were net long 19,920 lots, up 287 from the previous week.