US wheat futures fell on Friday as traders locked in profits following a rally on Thursday amid strength in the US dollar that dimmed already-weak export prospects, traders said. Plentiful global wheat stocks and modest export sales of US wheat continue to act as an anchor on the wheat market, countering bullish impact of occasional fund buying.
US wheat production was expected to fall during the 2009/10 crop year as poor conditions in the field harmed the winter crop and slowed seeding of spring varieties. Analysts forecast US wheat production at 2.022 billion bushels, down from 2.5 billion bushels a year ago and below the US Agriculture Department's May forecast of 2.026 billion bushels. USDA is set to release its next forecast on June 10.
Chicago Board of Trade July soft red winter wheat futures closed down 12-1/4 cents at $6.23 a bushel, a drop of 2 percent. Funds sold 3,000 lots. The Kansas City Board of Trade July hard red winter wheat contract ended down 15 cents, or 2.2 percent, at $6.75 per bushel. Traders said rolling of positions from July to September added to volatility in the Kansas City market.
Minneapolis Grain Exchange spring wheat for July delivery fell 17-3/4 cents, or 2.3 percent, to close at $7.43-1/2 a bushel. Morocco imposes 135 percent tariffs for wheat imports. Taiwan's millers to tender for US wheat on Tuesday. Thailand buys 45,000 tonnes US wheat for June shipment. Showers in northern US Plains favour developing HRW wheat crop, drier weather this weekend boosts harvest in southern Plains, while cold and wet weather slows development of US spring wheat in northern US Plains.