Chicago Board of Trade wheat futures were lower at midday on Wednesday as commercial hedge selling offset earlier strength, traders said. As of 12:01 pm CDT (1701 GMT), CBOT July wheat was down 2-1/2 cents at $3.29-1/2 per bushel, with deferred months down 4 cents to up 1. Hedge pressure knocked wheat off its mid-morning highs, traders said. Funds bought at least 6,000 wheat contracts by mid-session as wheat followed along with sharp rallies in soybeans and corn.
Fimat Futures bought 1,500 July contracts and Citigroup bought 1,000 July, traders said.
The Meteorlogix weather service said showers in Kansas this week should help the hard red winter wheat crop after dry conditions hurt crop condition ratings over the past month.