Chicago Board of Trade March wheat fell its 30-cent trading limit near the close on Friday. Traders said the wheat market was hit by talk funds would be rebalancing their positions by selling wheat and soybeans and buying corn. March wheat closed down 30 cents at $8.85 per bushel.
The Russian government said it would raise its wheat export tariff to 40 percent of customs value, from 10 percent, to keep grain at home. The move should restrict the world's exportable supplies and could boost demand for US wheat.
But calls firmed on the Russian news, along with strong weekly US export sales of wheat. The US Department of Agriculture put export sales at 419,100 tonnes (299,000 for 2007/08), within a range of trade estimates for 300,000 to 500,000 tonnes. Separately, Egypt said it would import 1 million tonnes of wheat from Kazakhstan in 2008 in an effort to secure supplies ahead of an expected rise in global prices.