Spring wheat futures at the Minneapolis Grain Exchange closed lower on Wednesday, following a weak trend in outside grain markets, brokers said. Several deferred months-set contract lows in a thinly traded session.
MGE September wheat closed down 4 cents at $3.48-1/2 while most-active December was down 1-3/4 at $3.35-1/2.
Volume was very light, estimated by the exchange at 2,835 contracts, down from 3,261 lots on Tuesday. The inverted September/December narrowed to close at a premium of 13 cents.
It was offered at 18 cents and bid at 15 cents.
Spread trade was quiet but open interest in September held at 535 contracts ahead of Wednesday's open.
The contract expires on September 14. There were no deliveries against the September for Wednesday. Declines in Chicago soy and corn futures set the tone for the wheat market, while a speedy harvest pace in the northern US Plains added pressure.
The US Department of Agriculture late on Tuesday said 90 percent of the US spring wheat crop had been cut, ahead of the five-year average of 81 percent.
Crop quality was good. Samples analysed thus far by the Cereal Science Department at North Dakota State University showed an average protein content of 14.6 percent and average test weight is 59.7 pounds per bushel.
The North Dakota Wheat Commission reported the data. MGE wheat futures were underpinned by a heavy net short position maintained by large commodity funds.
Also, some analysts believe wheat futures should be near their seasonal lows as the spring wheat harvest winds down. Overnight export news was bearish.
Traders and analysts in Beijing said China's wheat reserves are piling up, and the world's largest consumer is likely to forego further imports this year.
Meanwhile, Australia struck a new wheat sales deal with Iraq. Australia's monopoly wheat exporter AWB Ltd said shipments had just begun.
A trade source told Reuters the deal was for 650,000 tonnes. Jordan bought 100,000 tonnes of hard wheat in a tender, European traders said.
The grain was optional origin but traders said it was unlikely to have come from the United States.