Hard red spring wheat futures on the Minneapolis Grain Exchange closed lower in thin trade on Monday, weighed by lower-than-expected export data and slipover weakness from the Chicago and Kansas City wheat markets, traders said.
The US Department of Agriculture said 13.5 million bushels of US wheat were inspected for export last week. The figure was below trade estimates for 15 million to 20 million.
May spring wheat closed down 5-1/2 cents at $4.98 per bushel, after falling to a two-month low at $4.94. July was down 5-3/4 at $5.07 and new-crop December ended down 4-1/4 at $5.19. Volume was estimated by the exchange at 4,680 contracts, down from 5,695 on Friday. Chicago Board of Trade May wheat ended down 5-3/4 cents at $4.55 and Kansas City May wheat fell 7-1/2 cents at $4.79. Near-optimal crop conditions in the in the US Plains wheat belt weighed on winter wheat values, triggering speculative selling.
The drop in prices appeared to spark fresh export interest. After the close, Egypt's main wheat buyer said it was seeking 55,000 to 60,000 tonnes of optional-origin wheat for shipment April 16-30.
Results of the tender were expected on Tuesday and could influence calls in the US wheat markets. Weekly trade data issued on Friday showed large speculators expanded their heavy net long position in Minneapolis wheat in the week ended March 13, leaving the market vulnerable to long liquidation.
Combined futures and options, funds were net long 19,331 lots, up 943. Chicago wheat, large speculators (excluding index funds) widened their net short position in CBOT wheat to 13,335 contracts, up nearly 1,000 lots, as of March 13.
Index funds trimmed their net long to 192,701 contracts. In Kansas City, large specs (excluding index funds) reduced their net long to 28,281 contracts. Index funds pared their net long in KCBT wheat to 28,592 lots.