Chicago Board of Trade soft red winter wheat futures fell 2.2 percent on Tuesday, hitting a one-week low as a firming dollar cut demand for US commodities, traders said. Kansas City Board of Trade hard red winter wheat futures and MGEX spring wheat also posted sharp losses amid concerns that a turbulent global economy could force end users to cut back on their wheat purchases.
The CBOT May contract closed below its 30-day moving average for the first time since February 24. The 2.2 percent decline was the largest for the benchmark contract since February 10. CBOT volume was light, falling below the 30-day and 250-day moving averages.
Australian wheat output seen falling 13 percent in 2012/13 from all-time high of 29.5 million tonnes, the Australian Bureau of Agricultural and Resource Economics and Sciences. Analysts expecting upcoming US Agriculture Department report to project 2011/12 US wheat ending stocks at 836 million bushels, down from 845 million projected in February.
Analysts see world ending stocks at 212.608 million tonnes, down from USDA's February estimate of 213.100 million. The Chicago Board of Trade said there were no new deliveries against the expiring CBOT March contract. There were 347 deliveries against the MGEX March contract and 146 deliveries against KCBT March. ADM Investor Services and Country Hedging were major stoppers. Libya's state grain buyer bought about 65,000 tonnes of Russian-origin milling wheat in a tender for 63,000 tonnes.
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