US wheat futures closed lower on Wednesday on technical selling and the approaching harvest of what is expected to be a large US and world wheat crop, traders said. At the Chicago Board of Trade, most-active July soft red winter wheat fell 10-1/2 cents to close at $8.07-1/2 per bushel, with back months down 2-1/2 to 13-1/2 cents.
Front-month May, which expires next week, fell 11 cents t to $7.95. Funds net sold 2,000 CBOT wheat contracts, traders said. At the Kansas City Board of Trade, July hard red winter wheat closed 6-1/4 cents lower at $8.57-3/4 a bushel, with back months down 10 cents to up 10. Front-month May ended down 5 cents at $8.99.
At the Minneapolis Grain Exchange, July spring wheat ended down 3-3/4 cents at $9.71-1/4 per bushel, with back months down 5 to 15 cents. Front-month May fell 10 cents at $11.95. In another reminder of the looming world wheat harvest, a USDA attache report put European Union wheat production at 139 million tonnes for 2008/2009, up 9.5 million from previous year.
Beneficial rain in the southern US Plains wheat belt pressured the market. Storms produced 0.25 to 1 inch of rain in southern and eastern portions of the belt in the past day, reaching into west Texas. More rain expected on Wednesday.
Early reports from an annual Kansas wheat tour were promising. After scouting 190 fields on Tuesday, the tour estimated an average yield for those areas of 45.4 bushels per acre, up from 40 bu/acre in the same areas on last year's tour. On Wednesday, scouts on one leg of the tour found better than expected wheat in western Kansas, although some areas needed moisture.
Traders shrugged off USDA confirmation of sales of 300,000 tonnes of US hard red winter wheat to Iraq. Talk of the deal had supported the market on Tuesday. Statistics Canada reported Canadian wheat stocks down 32 percent at end March, in line with trade expectations. Tunisia tendered to buy 101,000 tonnes of optional origin milling wheat, European traders said.
Analysts expect USDA to slightly raise US old-crop wheat carryout; new-crop stocks to rebound. Trade estimates for USDA 2008/09 US wheat production. Deliveries on CBOT May at 99 lots. KCBT May deliveries at eight lots; no deliveries on MGE May.
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