CBOT wheat futures fall

Wheat futures on the Chicago Board of Trade settled lower on Tuesday in a profit-taking setback from strong advances on Friday that were led by corn, traders said.
The focus in wheat shifted back to bearish fundamentals, including a growing US wheat stockpile. The USDA on Friday raised its US wheat ending stocks figure to 472 million bushels from its December estimate of 438 million due to a slowdown in exports.
"There was nothing in the reports on Friday that really warranted the strong increases that we saw, other than corn being locked limit-up," Citigroup analyst Dale Gustafson said.
"Both wheat and beans today were able to divorce themselves from that aspect." CBOT March wheat settled down 15-1/2 cents, or 3.2 percent, at $4.64 per bushel, plunging below its 100-day moving average of $4.82 after reaching an overnight high of $4.84-1/2. Deferred months were down 10 to 19-1/2 cents.
Volume was on the heavy side, estimated by the CBOT at 89,974 wheat futures and 13,365 options. Weekly export data offered further confirmation of the sluggish pace of US wheat sales. The USDA pegged weekly inspections of US wheat for export at 15.9 million bushels, near the low end of trade estimates for 15 million to 20 million.
US crop conditions were bearish, with plentiful moisture in the US Plains seen buoying winter wheat crop prospects. A cold snap this week was not expected to harm the crop.
There was nothing fresh in the export docket to lift prices. Pakistan issued tenders to export 450,000 tonnes of wheat. Algeria, a big grain importer, was said to have enough wheat for several months. Japan said it offered to buy 125,000 tonnes of US, Canadian and Australian wheat at its regular weekly tender on Thursday.
Jordan signed a trade protocol to purchase 500,000 tonnes of Syrian milling wheat in an inter-government deal for delivery during the course of the year. Friday's CFTC Commitments of Traders report showed large speculators reduced their net long position in CBOT wheat for the week ended January 9. Index funds also trimmed their net long position in CBOT wheat.