US wheat futures closed lower on Monday on fears that global economic weakness would eat into demand in both the domestic and export sectors, traders said. Spillover pressure from a drop in the soy market also weighed on wheat prices. Wheat closed off its lows due to fears about deteriorating crop conditions in southern US Plains.
The US Agriculture Department said on Monday that wheat in Kansas was rated 59 percent good to excellent. The market had hovered around unchanged in midday trading before turning lower as the close of trading neared. Chicago Board of Trade March soft red winter wheat futures ended down 4-1/4 cents at $5.63-3/4 a bushel while the May contract fell 4 cents to $5.76-3/4 a bushel.
The Kansas City Board of Trade March hard red winter wheat futures contract settled down 8 cents, or 1.3 percent, at $5.93. The KCBT May contract was off 7-3/4 cents at $6.04-1/2 a bushel. Minneapolis Grain Exchange spring wheat for March delivery fell 5-1/2 cents at $6.46-1/2 a bushel while MGE May dropped 6-3/4 cents to $6.39-1/4 a bushel.
In Kansas City, an estimated 8,925 futures traded. Minneapolis volume was seen at 3,517 futures. Dry weather a concern in US Plains HRW areas of south-west Kansas, Oklahoma and Texas.
Drought deepens in China's wheat heartland. Australia's wheat plantings to be trimmed-analysts. Firm dollar makes US wheat less competitive on world market. US Agriculture Department says 11.95 million bushels of wheat inspected for export in latest week. Pakistan may buy 250,000 tonnes any-origin wheat - trade. Bidding deadline for separate tender for US wheat has been extended three times. Cash bids for wheat steady to firm. Funds trim net short position in CBOT wheat - CFTC.
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