Chicago Board of Trade wheat futures fell 4 percent on Wednesday on technical selling, including profit-taking, a day after the market surged to a six-month high led by corn and soy futures, traders said. Despite concerns about yield loss and quality problems in the Midwest soft wheat belt, US wheat remains uncompetitive on the world market, traders said.
Adequate domestic supplies add pressure. USDA's estimate of US June 1 wheat stocks at 753 million bushels, released Tuesday, was above a range of trade estimates.
CME Group's decision to raise trading margins on CBOT wheat and other products as of Wednesday's close may have prompted long liquidation.
K.C. hard red winter and MGEX spring wheat futures also fell but gained relative to CBOT wheat on spreads.
Wheat futures underpinned by concerns about dry weather in Canada and Europe.
European Union soft wheat production is forecast to decline to 140.7 million tonnes this year, according to a survey conducted by INTL FCStone. The figure is below a forecast issued by Strategie Grains last month of 141.6 million, which was below the 149.5 million produced in 2014.
CBOT reported 44 deliveries of CBOT wheat and 47 deliveries of K.C. hard red winter wheat. MGEX reported 57 July spring wheat deliveries.
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