Spring wheat futures at the Minneapolis Grain Exchange fell to eight-week lows on Monday on continued long liquidation following the USA's bearish wheat production estimates last week, traders said.
But a late commercial pricing helped lift value off the day's lows, traders said. MGE September spring wheat settled 6-1/2 cents lower at $4.50-1/2 per bushel after falling to $4.44, filling a gap on the contract's chart from June 19.
December ended down 8-3/4 at $4.59 and deferred months were down 3 to 9-1/2 cents. Volume was heavy, estimated by the exchange at 11,496 contracts, up from 10,658 on Friday.
Funds sold 1,700 to 2,000 contracts in Minneapolis, 4,000 in Chicago and 3,000 in Kansas City, traders said. UBS Warburg was a featured seller in Minneapolis of 1,100 December. The September/December spread traded at a carry of 9 to 9-1/2 cents. The market continued to digest on Friday's USDA crop reports, in which the government pegged the United States all-wheat crop at 1.801 billion bushels, above the average trade guess of 1.762 billion.
USDA put the hard red spring wheat crop at 423 million bushels, nearly unchanged from its July estimate of 425 million despite scorching weather in the northern US Plains. The US spring wheat harvest continues to progress at a fast pace, another bearish sign. After the markets closed, the USDA said the crop was 69 percent harvested, well ahead of the five-year average of 34 percent.
Weekly export data did little to lift futures. The USDA on Monday reported export inspections of United States wheat at 14.3 million bushels, below a range of trade estimates for 15 million to 20 million. Minneapolis traders also shrugged off news that Egypt bought Canadian wheat and United States over the weekend.
Egypt's GASC bought 110,000 tonnes of wheat, including 55,000 tonnes of US soft red winter wheat. On Friday's CFTC Commitments of Traders report showed large speculators reduced their heavy net long stance in Minneapolis wheat for the week ended August 8. Funds also cut their net long in Kansas City wheat but expanded their net long in Chicago wheat.