US wheat futures skidded lower on Monday, following declines posted in outside markets under pressure from a firmer dollar and continued economic uncertainty. The CBOT SRW May wheat ended down 18-1/2 cents at $5.04-1/2 per bushel. KCBT HRW May wheat closed down 10 cents at $5.59.
And the MGE May hard red spring wheat contract was last down 9-3/4 at $6.26. Traders said declines in US stocks, crude values and a stronger dollar weighed on the grain market, traders said. Crude oil fell more than 8 percent to its lowest levels since March 16 and the dollar hit a one-month high against a basket of currencies. As well, good planting conditions for corn was a pressure point.
Profit-taking in soyabean futures following last week's run to a six-month high was a factor as CBOT beans ended down more than 30 cents a bushel. The USDA said Monday that 14.2 million bushels of wheat were inspected for export in the latest reporting week, below trade estimates for 15 million to 18 million bushels.
In news of note, Australia's wheat production in 2009/10 could fall by about 1 percent to 21.2 million tonnes due to drought, according to a bank forecast. The Saudi grains import authority is facing pressure to build up strategic stocks of wheat after local producers scaled back production faster than expected and is expected to import 700,000 tonnes by August.
The wheat market was still speculating over how much freeze damage might have damaged the new US HRW wheat crop. Updated crop condition reports are due from the US Department of Agriculture Monday. Weekend showers buoyed wheat crop prospects in US Plains but a return to drier and warmer weather this week may begin to stress the crop, especially in the areas hurt by the recent freeze in Oklahoma and west Texas.
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