Spring wheat futures at the Minneapolis Grain Exchange closed mixed on Tuesday after a choppy session that saw prices rise to fresh contract highs in the day, traders said.
Inter-market spreading was supportive, with Minneapolis wheat gaining ground against futures in Kansas City and Chicago. But hedge pressure and profit taking limited the rally, traders said. Nearby months closed lower.
MGE July ended down 2-3/4 cents at $4.78 per bushel after reaching $4.86, above the previous contract high of $4.83. September settled down 1/2 at $4.86-1/2. Deferreds closed up 1/4 cent to 5 cents.
Country Hedging sold 100 July, 100 September and 100 December contracts, while ADM Investor Services bought 400 July, 250 September and 300 December, traders said. Wheat futures at all three US markets set contract highs on a decline in US winter wheat condition ratings.
As buyers disappeared, however, Chicago and Kansas City wheat retreated, pressuring Minneapolis.
The Agriculture Department said 30 percent of the US winter wheat crop was rated in good to excellent condition, down from 36 percent the previous week.
The USA's first spring wheat ratings of the year indicated the crop was off to a good start, a bearish factor for the Minneapolis market. The government rated 76 percent of the spring wheat crop as good to excellent, up from 74 percent a year ago.
The spring wheat crop was 90 percent planted, ahead of the five-year average of 85 percent, and 64 percent emerged, ahead of the five-year average of 58 percent. Overnight exports were routine. South Korean flour millers tendered to buy 23,000 tonnes of US No 1 wheat.
Japan said it offered to buy 151,000 tonnes of Canadian Australian and US wheat at its weekly on Thursday tender. Pakistan aims to export wheat for the first time in more than two years and will bid on tenders to sell grain to its long-time rival India, a Pakistani government official said.