US wheat futures fall

US wheat futures fell on Thursday along with a declining commodities sector in general, as a firmer US dollar, dull exports and abundant global wheat supplies weighed on prices, traders said. Weak third-quarter US economic data fuelled fears of slowing demand for raw materials like grains and crude oil, which fell by more than 2 percent on Thursday.
Reuters-Jefferies CRB index, a global commodities benchmark, fell nearly 3 percent, a day after jumping almost 6 percent in its biggest daily percentage gain ever. The US dollar strengthened against the euro, reversing earlier weakness and making dollar-denominated US wheat more expensive for buyers holding other currencies. December soft red winter wheat on the Chicago Board of Trade ended down 23-1/4 cents, or 4.1 percent, at $5.38 per bushel; March fell 22-1/2 cents to $5.58-3/4.
Funds were net sellers of about 3,000 wheat contracts, traders said. CBOT December closed below its 20-day moving average of $5.68 after giving back about half of Wednesday's gain. At the Kansas City Board of Trade, December hard red winter wheat settled down 24-1/2 cents, or 4.1 percent, at $5.73-1/2 a bushel; March off 24-1/2 at $5.91-1/2.
Minneapolis Grain Exchange December spring wheat ended 14-1/2 cents lower, or off 2.2 percent, at $6.47 per bushel; March down 15-1/2 cents at $6.35. CBOT wheat volume was estimated at a moderate 66,352 futures and 8,655 options. KCBT wheat volume was estimated at 11,128 futures; MGE at 4,919 futures. Lackluster weekly USDA export sales data pressured wheat futures, traders said. USDA put weekly export sales at 460,400 tonnes of 2008/09 crop wheat in the latest week, within estimates for 350,000 to 550,000 tonnes.
Japan bought less wheat than planned for the fourth consecutive grain tender on Thursday and was scheduled to hold an ordinary tender to buy 96,000 tonnes of US and Canadian wheat on Friday. The International Grains Council raised its 2008/09 world wheat output forecast to 683 million tonnes, up 7 million from last month. Wheat planting weather in the US Plains was expected to remain favourable. Argentine weather was mostly favourable for wheat while weather was improving in Australia.