US Wheat Review on Thursday: Slips on harvest ideas, weak demand news

 

 

Expectations for an increased U.S. harvest pace and lack of supportive demand news pushed U.S. wheat futures modestly lower Thursday.

 

Chicago Board of Trade September wheat ended down 5 1/2 cents at US$5.89 1/4 a bushel. Kansas City Board of Trade September wheat lost 4 cents to US$6.29 1/2, and Minneapolis Grain Exchange September wheat ended down 4 cents at US$7.02 3/4.

 

The markets felt some pressure from ideas cutting will accelerate due to warm and mostly dry weather in the U.S. Plains and southern Midwest, traders said. Highs will reach into the 90s Fahrenheit during the next 10 days, except for a bit of a break Saturday, said Don Keeney, meteorologist for Cropcast Agricultural Weather.

 

Wheat has a seasonal tendency to weaken heading into July as the harvest advances, analysts said. Nearby CBOT July wheat futures closed down 5 3/4 cents at US$5.60 1/4.

 

The markets slumped after ending slightly higher Wednesday on short covering. CBOT July wheat has lost more than US$1.15 since hitting an eight-month high June 1 on fund buying, spillover support and short covering.

 

"The charts are oversold, but I don't see much of a bounce back in the market this time of the year," said Larry Glenn, broker and analyst for Frontier Ag. "I think rallies will be sold."

 

Commodity funds sold an estimated 3,000 contracts at the CBOT.

 

 

Kansas City Board of Trade

 

Forecasts for warmer weather and clear skies in the Plains weighed on KCBT wheat amid word that Kansas has started its harvest, traders said. KCBT July wheat closed down 3 3/4 cents at US$6.19.

 

Demand news was unimpressive, with weekly U.S. wheat export sales coming in at 268,800 tonnes for the week ended June 11, traders said. Analysts had expected sales of 200,000 to 400,000 tonnes. Egypt's state-owned General Authority for Supply Commodities, meanwhile, canceled a tender for wheat.

 

"The export sales report wasn't anything great; Egypt canceled their tender," a broker said. "You didn't have much friendly news there."

 

 

Minneapolis Grain Exchange

 

MGE wheat closed lower with the other markets. Nearby MGE July wheat shed 4 3/4 cents to US$7.06 1/2.

 

Spring wheat in the northern Plains "mostly benefits" from warmer weather and scattered showers during the next 10 days, "except in areas with local flooding due to heavy storms," DTN Meteorlogix said in a forecast.

 

Wheat in the Canadian Prairie wheat also should "benefit from a recent warmer trend, although western crop areas are still too dry," the private weather firm said.