Spring wheat futures on the Minneapolis Grain Exchange closed lower on Tuesday as traders, mainly large speculators, continued to liquidate or sell their long holdings of wheat, traders said. Wheat prices had rallied to record highs in late summer, leaving the market loaded with excessive long positions and a portion of the wheat bulls were banking profits and getting out of the market.
MGE wheat closed unchanged to 13 cents per bushel lower with thinly traded July up 14. December ended 13 lower at $8.37 per bushel. Traders said there was nothing in the export arena to give wheat futures a lift, with Japan seeking 85,000 tonnes at its regular weekly tender. Taiwan on Thursday is expected to tender for 42,350 tonnes of US wheat. Wheat analysts and traders said bullish fundamental news, such as tight global stocks and a drought in Australia's wheat region, had already been factored into the market, leaving it vulnerable to a profit-taking setback.
DTN Meteorlogix weather service on Tuesday said Australia's wheat belt needs more rain to prevent further yield losses on that portion of the crop that is in its filling stage of development. Rainfall over the next week will aid fall seeding and winter wheat prospects in the US Plains hard red winter wheat region, but more rain is needed in the far Southwest, Meteorlogix said.
USDA late on Monday said 73 percent of the US winter wheat crop had been planted, behind the 76 percent five-year average. Forty-three percent of the crop had emerged, USDA said.