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CBOT wheat ends mixed to weak, pressed by corn/soy

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed mixed to weaker on Tuesday, underpinned by the USDA's April supply/demand report but pressed by a late sag in corn and soybeans.

CBOT wheat closed 1/2 lower to 1/4 higher, with May unchanged at $2.52-3/4 and July off 1/4 cent at $2.64-3/4.

The U.S. Department of Agriculture raised its forecast of 1999/2000 U.S. wheat exports to 1.075 billion bushels from 1.050 billion and cut ending stocks to 943 million from 997 million.

USDA raised Argentine production to 15.0 million tonnes from its March estimate of 14.5 million, while the country's exports were lifted to 10.5 million from 10.0 million.

The size of the crop in the European Union was raised to 96.94 million tonnes from 96.93 million. China's crop was kept unchanged at 115 million tonnes.

In export news, Egypt bought 120,000 tonnes of U.S. wheat at a tender along with 60,000 French and 180,000 Australian wheat.

Wheat futures continued to struggle amid improved U.S. crop weather and ideas that the condition of the crop was improving.

The USDA late Monday said 61 percent of the U.S. winter wheat crop was in good to excellent shape, compared with 60 percent in that category a week ago.

Weather Services Corp. early Tuesday reported that crops are in fair to good condition in Nebraska and Oklahoma and good to excellent condition in eastern Colorado and Kansas, though in some areas there are reports of yellowing from too much moisture. Development is well ahead of normal. Previous dryness hurt crops in Texas with only some surviving and improving due to recent rain in the region.

WSC predicted dry weather from Thursday through Saturday except for a chance of showers and thunderstorms in the north on Saturday. Temperatures were expected above normal.

Besides the Egyptian purchases, export action overnight included news the Taiwan Flour Mills Association bought four cargoes of U.S. wheat totalling 135,600 tonnes at a tender on Tuesday, traders said.

Australia's AWB Ltd said on Tuesday it was bidding to sell wheat to Egypt in the country's first tender under its new wheat import administration.

There were signs of problems early Tuesday with China's wheat crop. Drought struck most northern parts of China in late March and will damage the winter wheat crop at its peak growing season, a meteorologist said Tuesday.

Technical traders cited support in the May contract at $2.51 and resistance at $2.56.

Funds bought 900 lots. FIMAT Futures bought 600 May and 400 July. O'Connor and Co. sold 1,000 July, ADM Investor Services sold 200 each of May and July and Cargill Investor Services bought 400 July.

CBOT wheat futures volume was estimated by the CBOT at 20,000 lots, below the 22,160 lots traded Monday.

Wheat options volume was estimated at 4,500 lots.-Reuters