MGE spring wheat easier

Spring wheat futures on the Minneapolis Grain Exchange closed lower on Monday in sympathy with technical declines in the Kansas City and Chicago wheat markets, traders said. Disappointing weekly export data added pressure.
The US Department of Agriculture said 10.8 million bushels of US wheat were inspected for export last week, well below trade estimates for 18 million to 21 million.
MGE September spring wheat closed down 9-1/4 cents at $6.10 per bushel, with December down 8 cents at $6.20 and back months down 3 to 17-1/2 cents. December 2008 fell 17-1/2 cents at $5.56-1/2 as firms sold the contract against Kansas City and Chicago on inter-market spreads, traders said.
ADM Investor services and Country Hedging each sold 100 to 200 September contracts. Prudential sold 100 December 2008. The spot July contract, which is in delivery, fell 11 cents to close at $6.14. Open interest in July was down to 50 contracts ahead of the open, and there were no deliveries against the contract for Monday.
Forecasts for mostly dry weather this week in the northern US Plains spring wheat belt helped underpin prices. The dry pattern is a concern because the spring wheat crop is entering its heading and flowering phases, key growth stages in determining yields.
Stress from hot and dry weather typically threatens the crop's yield potential. "We are looking at a pattern has turned significantly drier over the last few weeks, so topsoil moisture levels are plummeting," DTN Meteorlogix forecaster Mike Palmerino said.
After the close, the USDA said 78 percent of the US spring wheat crop was rated in good to excellent condition, down from 79 percent the previous week and in line with trade expectations.
USDA said 82 percent of the crop was headed, above the five-year average of 70 percent. Export business was mostly quiet over the weekend. But new demand emerged after on Monday's close as Egypt's main wheat buying agency said it wanted to buy 55,000 to 60,000 tonnes of US, French, Australian, German, Argentine, Canadian and/or Kazakh wheat for shipment August 11-20.
Results of the tender were expected on Tuesday and could shape calls for CBOT wheat. Taiwanese millers were expected to tender on Tuesday for 88,890 tonnes of US wheat.