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CBOT wheat ends down on weather and Dow spill-over

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower on Friday on good near-term crop weather and on a steep slide in the Dow Jones Industrial average.

CBOT wheat closed 1/2 to 2-1/2 lower with May down 2 at $2.55-3/4.

Traders said they noted spill-over selling from the outside markets Friday, mainly from the break in the Dow and on a sharp slide in the Nasdaq composite index.

Near-term weather overall was conducive for the U.S. winter wheat crop, the traders said.

Rainfall was expected through the weekend across a widespread area of the U.S. Great Plains hard red winter wheat region, a Weather Services Corp. meteorologist said.

WSC's Joel Burgio said from 0.30 inch to 1.50 inches were forecast for the region.

But there was some support in the market early Friday on concerns about potential dry and hot weather in the U.S. this summer.

Thursday's National Weather Service 30-day outlook was for above-normal temperatures in the U.S. Midwest and below-normal precipitation.

The 90-day outlook for the Midwest was for above-normal temperatures throughout the U.S. with the highest probability over the desert Southwest, the Midwest and in the Central Plains. Below-normal precipitation was expected over the Plains and Midwest extending eastward to the mid-Atlantic Coast, NWS said.

Traders also said eyes were being trained to China's wheat crop for potential production problems there.

The spread of plant disease in the northern Chinese province of Hebei threatened more than 1.34 million hectares (3.3 million acres) of wheat, China's Futures Daily reported on Friday.

As much as 1 million hectares have been affected since late February and the diseases were likely to spread fast as temperatures warmed up, it said.

Technical traders cited support in the May contract at $2.55-1/4 and resistance at $2.59-1/2.

Funds sold 600 lots. Term Commodities sold 100 May and 300 July, O'Connor sold 300 July and Tenco bought 800 July.

CBOT wheat futures volume was estimated by the CBOT at 22,000 lots, below the 23,803 lots traded Thursday.

Wheat options volume was estimated at 5,000 lots.-Reuters