US wheat futures were lower at midsession on Wednesday on profit-taking and as recession fears triggered a broad sell-off in commodities, traders said. Soyabeans and corn were down as well, backing off fresh highs set this week. Crude oil and gold prices were also down hard on concerns about a potential recession.
The weakness in CBOT wheat was in response to acreage data issued last week by the USDA. The government showed an increase in seedings of soft red winter wheat, the type traded in Chicago, and a surprise drop in hard red winter wheat, the type traded in Kansas City.
The data signalled that supplies of HRW wheat should remain tight in 2008/09. It also raised the need for ample plantings of hard red spring wheat this spring.
As of 11:54 am CST (1754 GMT), CBOT March wheat was down 20 cents at $9.12 per bushel, after briefly falling the 30-cent daily limit to $9.02. New-crop July was down 12-1/4 cents at $8.38.
In export news, Jordan will double its wheat stocks to shield itself from volatility in international markets, European traders said. Pakistan said it would open tenders for the import of 610,000 tonnes of wheat on January 18, instead of January 21, while all other terms and conditions remain the same.