US wheat futures close lower

07 Sep, 2008

US wheat futures closed lower on Friday, with spot prices on the Chicago Board of Trade falling to the lowest level in a year as long liquidation pressured the commodities sector, traders said. The Reuters-Jeffrey's CRB index of 19 commodity prices fell to a fresh seven-month low, led by a drop in crude oil as US economic woes fuelled concerns about demand.
Technical selling noted in wheat, including profit-taking after Thursday's rally. At the CBOT, September soft red winter wheat fell 25-1/2 cents, 3.4 percent, to settle at $7.29-3/4. The contract fell to $7.21-3/4, the lowest spot price since August 2007.
Most-active CBOT December wheat settled 25-1/2 cents lower at $7.51-1/2. At the Kansas City Board of Trade, September hard red winter wheat ended down 27-1/4 cents at $7.73 per bushel, with December down 24 cents at $7.95.
At the Minneapolis Grain Exchange, September spring wheat fell 31 cents to settle at $8.03 per bushel, with December down 26 at $8.15-1/4. CME Group recommended changes to CBOT wheat contract, including higher seasonal storage rates, increased delivery points and lower vomitoxin levels. CBOT wheat volume was estimated at 62,032 futures and 16,589 options. KCBT wheat volume estimated at 14,196 futures; MGE at 6,390 futures.

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