Nearby wheat futures on the Chicago Board of Trade fell on Tuesday on profit-taking and news that Egypt cancelled a purchase of US soft red wheat, traders said. CBOT and KCBT March contracts lost ground to back months as traders unwound bull-spreads. But back months at the CBOT closed higher, as did KCBT and MGEX wheat.
Most-active KCBT MAY hard red winter wheat broke through chart resistance at its 100-day moving average at $6.85-1/4 a bushel and settled at $6.91. Markets supported by concerns about cold weather stressing crops in the US Midwest and dry conditions in the southern Plains. USDA's weekly Texas state crop report released on Monday showed the amount of wheat rated poor to very poor rose by 3 points to 47 percent.
The US Department of Agriculture said private exporters reported the cancellation of 110,000 tonnes of US soft red winter wheat sold to Egypt for 2013/14 delivery. Egypt's cancellation likely had more to do with rising US prices than with political turmoil within the world's top wheat importer, grain traders said. Egypt's government approved financial guarantees of $75.3 million for the import of wheat, raising the possibility of a fresh purchase tender despite a shake-up in its import and storage authorities. First notice day for deliveries against CBOT March grain and oilseed contracts is Friday.
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