US wheat futures closed lower on Wednesday, falling 3 to 4 percent on technical selling and concerns that US wheat is overpriced on the global market, traders said. Also bearish was news that Turkey cancelled a tender to buy 250,000 tonnes of US milling wheat.
Wheat futures faltered and turned lower shortly after the market opened, as soybeans backed off a limit-up rally. Traders said the limit move in soybeans had been supporting wheat. Chicago Board of Trade May soft red winter wheat closed down 34-1/2 cents, 3 percent, at $10.33 per bushel, with new-crop July down 36 cents at $10.32-1/2.
Commodity funds sold 2,000 CBOT wheat contracts, traders said. Kansas City Board of Trade May hard red winter wheat closed down 50 cents, 4.5 percent, at $10.69 a bushel, with new-crop July down 32-1/2 at $10.72-1/2.
Minneapolis Grain Exchange May spring wheat fell 45 cents, 3 percent, to close at $13.05 a bushel, and new-crop September was down 37-1/2 at $10.87-1/2. CBOT wheat closed higher but well off its session highs on both Monday and Tuesday, signalling Wednesday's technical retreat.
Wednesday's downturn appeared to attract fresh export business. After the CBOT close, Egypt said it was seeking wheat for May 11-31 shipment. Traders were positioning ahead of USDA's March 31 plantings and quarterly stocks reports. Trade expects USDA to show 2008 US all-wheat plantings at 63.628 million acres and wheat stocks 666 million bushels.
Traders eyed worrisome dry weather in western areas of US Plains hard red winter wheat belt, a supportive background market factor. Flooding from heavy storms last week submerged tens of thousands of acres of winter wheat in Arkansas.
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