US wheat futures closed mixed in choppy trade on Wednesday, with Chicago Board of Trade soft red winter wheat losing ground to the hard wheat markets in Kansas City and Minneapolis, traders said. The US Department of Agriculture's April supply/demand report raised the ending stocks estimate for soft red winter wheat, the type traded in Chicago.
USDA trimmed stocks estimates for hard red winter wheat, traded in Kansas City, and hard red spring wheat, traded in Minneapolis, helping to support those markets. USDA left its estimate of US 2007/08 all-wheat ending stocks unchanged at 242 million bushels, below an average of analysts' estimates for 263 million. Early market pressure stemmed from forecasts for rain in dry areas of the southern US Plains hard red winter wheat belt.
Trade was volatile. Wheat futures at all three US markets fell hard after the open, but rallied near midday as soybean futures soared on rumours of a renewed farmer strike in Argentina. But one of Argentina's farming groups said it was unlikely that the strike would resume within a 30-day moratorium declared last week.
CBOT May soft red winter wheat settled unchanged at $9.34 per bushel, after trading in a wide range from $9.61 to $8.95. New-crop July ended down 3/4 cent at $9.46-3/4. KCBT May hard red winter wheat closed up 1 cent at $9.88 a bushel, with new-crop July up 5 cents at $9.99. MGE May spring wheat settled up 5 cents at $13.20, with new-crop September up 7 at $10.42.
French crop office ONIGC projected world wheat production in 2008/2009 at 635-640 million tonnes, below the International Grains Council's figure of 646 million. ONIGC raised its 2007/08 wheat stocks forecast to 2.6 million tonnes.
Russia launches wheat futures trade. Trading volume for CBOT wheat futures was heavy on Wednesday at an estimated 123,779 contracts, up from 83,021 on Tuesday. Spreading helped boost the total as index funds continued to roll May positions forward. KCBT volume was estimated at 25,662 contracts. MGE volume was estimated at 5,054 contracts.