Chicago Board of Trade wheat futures ended on a low note on Wednesday, as the market continued to wrestle with concerns over sluggish export demand and the US ability to compete with the Russian wheat market, traders said. Wheat futures' prices also were pressured by technical selling, as was much of the grains complex on Wednesday, as funds sought profit-taking before the year-end, traders said.
CBOT March soft red winter wheat settled 6-1/2 cents lower at $5.10 per bushel - its lowest price since December 6. Earlier, the contract fell to $5.09, its lowest price since November 30. K.C. March wheat futures settled down 7 cents to $4.95-1/2 per bushel - falling to the lowest since December 6.
MGEX March spring wheat fell 12-1/4 cents to settle at $5.49-1/4 per bushel. Earlier, it hit a contract low of $5.48 per bushel. The United States inspected 543,126 tonnes of US wheat for export last week, the US Department of Agriculture said on Wednesday. That was in-line with analysts' expectations for 475,000 to 700,000 tonnes.
Hard red winter wheat spot basis bids were flat in the southern US Plains on Wednesday, with declining futures slowing the already reduced pace of farmer sales, dealers said. Farmers were expected to delay sales until 2019 both to defer payments for their grain until a new tax year and in the hope that prices rise, the dealers said.
Such a slowdown in sales is stretching across the grains sector, as traders say corn and soyabean farmers have also cut back on sales as futures prices have fallen and customs data showed China had made no purchase of US soyabeans in November. Last week, Russia's agriculture ministry lifted its forecast for 2018/19 grain exports to 42 million tonnes, which traders interpreted as another sign that the risk of export curbs is easing.
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