US wheat futures plunged close to their 60-cent-per-bushel daily trading limits on Monday, after a US Agriculture Department report estimated 2008/09 end stocks were bigger than expected, traders said. Chicago Board of Trade March wheat futures settled down 59-3/4 cents per bushel, a 9.5 percent drop, at $5.69-3/4, while May was down 59-3/4 cents, or 9.3 percent, at $5.82-1/2.
Both May and March had fallen the 60-cent limit during the session. Futures stop trading when prices reach their limit. Late options trade indicated March futures were down the 60-cent limit. Funds sold 5,000 lots. March fell below its 20-day moving average of $5.81-3/4. Kansas City Board of Trade March wheat futures closed down 56 cents, or 8.6 percent, at $5.95 per bushel, with May down 56-1/4 cents, or 8.5 percent, at $6.06-1/4.
Minneapolis Grain Exchange spring wheat for March delivery was down 52 cents at $6.28-1/4 a bushel, while May fell 55-1/4 cents to $6.29-3/4 a bushel. The trading limit for Chicago Board of Trade wheat contracts will be expanded to 90 cents per bushel for Tuesday's session. Minneapolis and Kansas City contracts will maintain their 60-cent limits.
USDA forecast 2008/09 US wheat end stocks at 655 million bushels, up 32 million from its December forecast, and above the average analyst forecast of 608 million. USDA put US winter wheat seedings at 42.098 million acres, down 9 percent from 2008 and below an average of analysts' estimates for 44.292 million. USDA reported US wheat export inspections at 19.613 million bushels, above estimates for 9 million to 15 million. Ukraine 2008 grain crop hits record 53.3 million tonnes.