Hard red winter wheat futures on the Kansas City Board of Trade ended lower on Friday in a setback from the market rally Thursday and amid forecasts for beneficial rainfall in the US Plains. The March closed down 3-1/2 cents at $5.86-1/2 a bushel, and May settled down 3-1/4 cents at $5.97-1/2. Traders said there was some limited positioning ahead of USDA's February supply/demand and world crop production reports due out Tuesday.
Traders were expecting only minor adjustments to US wheat ending stocks. Losses in wheat came despite gains in Chicago Board of Trade soyabean futures and strength in CBOT corn. Traders said forecasts for beneficial rains in the US Plains put some limited pressure on wheat prices as the moisture could help partly alleviate stress on the new HRW wheat crop due to dry soils.
Drought in China's wheat-growing areas was being watched by traders, with some rain now in the forecast. In world wheat news, Tunisia purchased 50,000 tonnes of soft milling wheat and Russian wheat exports fell 19 percent to 11.72 million tonnes in 2008.
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