US wheat futures fell on Friday, led lower by a sharp decline in MGEX spring wheat as investors liquidated bullish positions following the US Department of Agriculture's forecast for a bigger-than-expected crop in the northern Plains, traders said. The selloff pushed the benchmark Chicago Board of Trade soft red winter wheat contract to its lowest in nearly two months. MGEX spring wheat ended down 4.2 percent and hit its lowest since June 26, pressured by the USDA's outlook for a bigger-than-expected crop in the northern Plains.
Chicago soyabean and corn futures edged higher, with mild bargain buying underpinning prices. All three posted weekly declines as the USDA's forecast on Thursday for bumper corn and soyabean harvests continued to hang over the market. Wheat futures have fallen for five straight weeks, and corn and soyabeans for three.
Chicago Board of Trade September soft red winter wheat futures ended down 1-1/4 cents at $4.39-1/4 a bushel. MGEX spring wheat for September delivery shed 29-1/4 cents to $6.74 a bushel. CBOT November soyabeans were 4-3/4 cents higher at $9.45 a bushel and CBOT December corn was up 3-3/4 cents at $3.74-3/4 a bushel.
The USDA on Thursday projected the US corn yield at 169.5 bushels per acre (bpa), below its previous forecast of 170.7, but well above the average trade estimate of 166.2 bpa. The USDA also wrong-ooted investors by increasing its soyabeans yield forecast to 49.4 bpa from 48.0, rather than trimming it as expected.
Wheat markets remained dampened by the USDA's supply outlook, which included a sharp increase in projected global wheat stocks in 2017-18, supported by increased estimates for Russian, Ukrainian and Kazakh crops.
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