Chicago Board of Trade wheat futures closed lower on Monday, pressured by ample global supplies and weak demand for US exports which are at their lowest levels in more than 40 years, traders said. CBOT March traded higher early in the session, but failed to hold the gains. The contract fell through its 20-day moving average near $4.84-1/2 a bushel and settled at $4.79, down 7-3/4 cents on the day.
K.C. hard red winter wheat futures and MGEX spring wheat futures also ended lower. US wheat export inspections last week topped trade estimates at 475,375 tonnes, according to US Department of Agriculture data released on Monday. However, US wheat continues to face headwinds in export markets as rival exporters are offering grain at lower prices. Russian export prices fell last week.
Russia proposed reducing or cancelling its wheat export tax, Interfax news agency reported on Monday, citing First Deputy Minister Evgenii Gromyko. Commodity Futures Trading Commission data released late Friday showed that large speculators reduced their net short positions in CBOT wheat futures in the week ended December 15.
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