Spring wheat futures at the Minneapolis Grain Exchange closed lower on Tuesday on reminders that the US spring wheat crop is off to a strong start, traders said. Declines in Chicago Board of Trade wheat added pressure after the USDA reported an improvement in US winter wheat ratings.
July spring wheat ended down 7-3/4 cents at $4.97-1/2 per bushel after falling to a one-month low at $4.95. September closed down 7-1/2 cents at $4.99 and December was down 5-1/4 at $5.08-3/4. Man Financial sold 200 July and 200 December contracts, traders said. Volume remained light at an estimated 3,689 contracts.
The US Department of Agriculture's weekly crop progress report, issued late on Monday, said 81 percent of the US spring wheat crop was rated in good to excellent condition, up from 79 percent the previous week.
The spring wheat crop was 95 percent planted and 74 percent emerged, ahead of the respective five-year averages of 86 percent and 60 percent. USDA also said 59 percent of the United Stated winter wheat crop was rated good to excellent, up from 58 percent the previous week.
That factor, coupled with seasonal pressure ahead of the approaching winter wheat harvest, weighed on Chicago Board of Trade wheat. Chicago Board of Trade July wheat ended down 8-1/2 cents at $4.71. Export business was mostly routine. Japan said it would seek 130,000 tonnes of US, Canadian and Australian wheat at its regular weekly tender, and South Korean millers were seeking to buy 22,400 tonnes of United States wheat. Algeria was tendering for at least 50,000 tonnes of optional-origin milling wheat, European traders said.
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