US wheat futures hit lows not seen in more than six weeks on Monday as forecasts for the first summer heatwave bode well for harvest but weighed on grains across the board. Benchmark Chicago Board of Trade July soft red winter wheat futures ended down 9-1/4 cents a bushel at $5.46. Kansas City Board of Trade July hard red winter wheat ended 10-3/4 cents per bushel lower at $6.04.
Minneapolis Grain Exchange spring wheat for July delivery settled 5-1/2 cents per bushel lower at $6.93-1/2. Weak crude oil futures, stronger US dollar weighed on all grain markets. Excess rain causing some problems with vomitoxin, low test weight in soft wheat. Rain stalled harvest in top wheat state of Kansas over the weekend.
Forecast highs of 100 degrees Fahrenheit to dry fields. Wheat yields seen improving as harvest advances northward, but protein levels are lower in better-yielding northern areas, supporting Minneapolis values. Funds sold 3,000 lots of CBOT wheat. USDA said there were 13.3 million bushels of wheat inspected for export last week, below estimates for 15 million to 18 million. Showers forecast for dry parts of Minnesota this week.
Rain soaked large swath of Canada's main wheat-growing province of Saskatchewan, but missed severely dry areas in Alberta. Large speculators expanded net short position in CBOT wheat by 7,200 contracts in week ended June 16 - CFTC. Traders expect USDA to show harvest progress late on Monday at 18 percent, from 9 percent last week.
Amount of winter wheat in good-excellent condition in USDA report expected to be unchanged to up 1 percent, with spring wheat conditions eyed up 1 percent to unchanged. Israeli consortium tenders for 35,000 tonnes of feed wheat of European origin. Australian exporters missing out on wheat sales to Asia because of tight supplies, logistics problems.
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