MGE spring wheat settles mostly lower

Spring wheat futures on the Minneapolis Grain Exchange closed mostly lower on Monday on hedge-related selling and profit-taking after the supply-driven rally last week to 11-year highs, traders said. Minneapolis July spring wheat ended down 2-1/4 cents at $5.84 per bushel, with September unchanged at $5.95 and December down 1/4 at $6.07-1/2.
December hit a contract high overnight at $6.29. Volume was estimated by the exchange at 5,120 contracts. Man Financial sold 250 July contracts while Country Hedging sold 150 September and 100 December.
ADM Investor Services was a net seller of 150 July and 100 September, traders said. MGE July wheat stayed above all its key moving averages and the nine-day relative strength index was in overbought technical territory at 80 ahead of the open, a sign the market was due for a downward correction.
The RSI closed at 77. Still, bullish fundamental news underpinned values, including reminders of dry conditions in Eastern Europe. Ukraine's government on Monday cut its 2007 all-grain harvest forecast to a maximum of 30 million tonnes, from 38 million previously, a deputy prime minister said.
The official estimated Ukraine's wheat harvest at about 12 million tonnes, below the US Agriculture Department's June estimate of 14 million. Romania might import up to 1 million tonnes of wheat this year to cover a domestic shortfall due to drought, a grain producers' group said.
Morocco's state grain agency said it was tendering to import 250,000 tonnes of US soft wheat and 90,000 tonnes of US durum, plus 250,000 tonnes of European Union soft wheat.
Morocco postponed a tender to import 298,636 tonnes of soft wheat to June 21. Weekly US export data was supportive. The US Department of Agriculture said 16.4 million bushels of US wheat were inspected for export last week, above estimates for 11 million to 16 million.
After the close, USDA said spring wheat ratings improved, with 85 percent of the crop rated good to excellent, up from 81 percent a week. Traders were expecting a slight decline.
USDA said 50 percent of the US winter wheat crop was rated in good to excellent condition, down from 52 percent the previous week. The winter wheat harvest remained behind schedule, with 11 percent cut, compared with the five-year average of 20 percent.