US Wheat Outlook on Menday: Seen down 2-4 cents amid ample supplies

U.S. wheat futures are expected to open 2 cents to 4 cents lower Monday on abundant supplies and sluggish export demand.

In electronic trading, December soft red winter wheat futures in Chicago were 2 1/2 cents lower at US$4.54 3/4 a bushel.

Weakness in other markets will also pressure wheat futures, traders said. Corn futures were called 3 cents to 4 cents lower and soybean futures were called 6 cents to 8 cents lower.

Traders and analysts said there was little news moving wheat prices. Rainfall forecast for key wheat-growing regions of Australia may lend further pressure on wheat futures, said Mike O'Dea, a risk management consultant with FCStone, LLC, in Kansas City, Mo.

According to T-storm Weather, LLC, "Wheat in notable areas of Australia received helpful rain last week, and more occurs this week," the forecaster said in a note. Still, "driest areas stay drier and a slight chance of frost exists in wettest areas this weekend."

The December wheat futures in Chicago reached a life-of-contract low of US$4.50 last week, and prices probably have at least another 20 cents to the downside, O'Dea said.

Despite declining for much of the past three months, U.S. wheat remains expensive compared to other world markets such as Russia and Ukraine, he said.