Soft red winter wheat futures on the Chicago Board of Trade ended lower on Friday on a setback from the rally at mid-week and on spillover pressure from a slide in corn and soyabeans, traders said. CBoT wheat closed 1-3/4 to 7 cents per bushel lower, with September down 3-3/4 at $6.16-1/4 per bushel.
Traders said the wheat market was poised for volatility with occasional bouts of profit-taking and long liquidation pressure balanced by bullish wheat fundamentals.
They said the market was underpinned by news the French November wheat futures hit fresh contract highs Friday on concerns over lower yields due to recent wet weather. And gains in wheat were reflecting concern about heat in parts of the US spring wheat region which may harm some of the 2007 US spring wheat crop.
Wheat futures rallied to fresh 11-year highs early Thursday, then set back in volatile dealings, with traders focusing on aggressive sales of US wheat along with demand and purchases this week by Morocco, Tunisia, Egypt and Bangladesh. Traders in London early Friday said European wheat prices were soaring because of talk early harvest from southern central France showed yields significantly below average.