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Wheat futures at the Chicago Board of Trade fell over 3 percent on Wednesday on fund long liquidation tied to profit-taking and year-end book-squaring, traders said.
At 10:11 am CST (1611 GMT), CBOT wheat was down 1 to 16-3/4 cents per bushel, with December down 16-1/2 at $4.81-1/2 per bushel. March was down 17-1/4 at $5.00 per bushel. Traders said Rand Financial was the main seller of 1,000 March.
Traders were eyeing outside markets on Wednesday and got some bearish input from a firm dollar and weak gold, while also awaiting results of an Iraqi tender for optional-origin wheat.
US and Canada were the top contenders to land an Iraqi tender for 100,000 tonnes of wheat on Saturday, US traders said. Meanwhile, Iraq has begun shipping some of the 700,000 tonnes of US wheat purchased earlier this year, they said.
Crop weather in the United States was generally satisfactory for the US winter wheat crop, which is entering its winter dormancy period, but there were a few pockets of dryness.
Meteorlogix weather service on Wednesday cited the potential for beneficial moisture next week in the US Plains wheat region and said soil moisture remained short in northern China. Technical support in the March contract at $5.08-3/4 per bushel was broken, driving the contract to a session low of $4.79-1/4 per bushel.

Copyright Reuters, 2006

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