Chicago Board of Trade wheat futures ended lower on Tuesday after a seesaw session as traders adjusted positions one day ahead of a pair of US Department of Agriculture crop reports, traders said. The spot December wheat contract held above support at its 50-day moving average at $5.00 a bushel. The contract stayed inside the previous day's trading range, underscoring a lack of strong direction.
Plentiful global wheat supplies and strong export competition hung over the market, limiting rallies, while worries about dryness hampering winter wheat germination in the Black Sea region lent underlying support. K.C. hard red winter and MGEX spring wheat futures also settled lower, following CBOT wheat.
Traders awaited USDA's quarterly stocks and small grains reports on Wednesday. A Reuters poll of analysts pegged US September 1 wheat stocks at 2.149 billion bushels, which would be the highest September 1 stocks since 2010. For the US small grains report, a Reuters analyst poll estimated US 2015-16 all-wheat production at 2.133 billion bushels, little changed from USDA's last estimate of 2.136 billion.
USDA late on Monday said the US 2016/17 winter wheat crop was 31 percent planted, lagging trade expectations and the five-year average of 35 percent. Egypt's state-owned grain buyer, the General Authority for Supply Commodities, could raise the protein content it requires for imported wheat from its main suppliers, a government source said.
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