Wheat futures on the Chicago Board of Trade fell to a two-week low on Monday on strong competition for export sales and forecasts for improving harvest weather in the southern US Plains, traders said. CBOT July wheat fell below chart support at its 50-day moving average near $5 a bushel, settling down 14-1/2 cents at $4.89-1/4. K.C. hard red winter and MGEX spring wheat futures followed CBOT wheat lower. K.C. wheat posted the biggest declines of the three markets.
Forecasts called for drier weather next week in the southern US Plains, easing threats to crop quality and aiding harvest prospects. Heavy rains are likely this week in the south-eastern Plains, but lighter amounts are predicted for core areas of north-west Texas, western Oklahoma and Kansas. Argentina on Friday authorised an additional 1 million tonnes in 2014/15 wheat exports, bringing the season's approved quota to about 4.7 million tonnes. Russian wheat was offered lowest in a tender from Iraq's state grain board to buy at least 50,000 tonnes of hard wheat, European traders said.
Ahead of the US Department of Agriculture's weekly crop progress report due later on Monday, analysts expected the government to report the US winter wheat harvest as 11 percent complete, up from 4 percent a week ago. Analysts expected no change in the USDA's US wheat ratings, with 43 percent of winter wheat and 69 percent of spring wheat seen in good to excellent condition.