Spring wheat futures at the Minneapolis Grain Exchange closed lower on Thursday as favourable US spring wheat crop prospects continued to weigh on the market, traders said. However, trade remained thin, continuing this week's trend.
Volume was estimated by the exchange at 2,347 contracts. July spring wheat settled down 9 cents at $5.12 per bushel, with September down 7-1/2 at $5.11-1/2 and December down 7-1/2 at $5.18-1/2.
The July/September spread traded lightly at an inverse between 1/2 and 2 cents. Weather in the northern US Plains remained favourable for emerging spring wheat crops, traders said, and a private firm released an estimate for increased US seedlings.
Consulting firm Informal Economics estimated US "other spring" wheat plantings at 14.0 million acres, above the US Department of Agriculture's March estimate of 13.8 million.
The USDA will update its planting estimates on June 29. Seasonal declines in Chicago Board of Trade wheat ahead of the US winter wheat harvest set the weak tone. CBOT July closed down 11-1/4 cents at $4.92-1/4 per bushel, tumbling on sell-stops toward the close. News that Egypt rejected US wheat at its latest tender and instead bought 120,000 tonnes of Russian or Kazakh wheat was viewed as bearish.
On a bullish note, USDA said exporters reported the sale of 200,000 tonnes of US hard red winter wheat to Iraq for 2007/08 delivery. Trade sources said Iraq also bought 50,000 tonnes of Canadian wheat, and was negotiating to buy another 100,000 to 200,000 tonnes from Canada and/or the United States.
The USDA reported export sales of US wheat for last week at 394,400 tonnes (old and new crop combined), within estimates for 250,000 to 500,000 tonnes. However, the old-crop total of 56,900 tonnes was a marketing-year low. Japan bought 130,000 tonnes of Canadian Australian and US wheat at its regular weekly tender.