20000218

CBOT wheat closes lower on forecasts for snowfall

CHICAGO: Wheat futures at the Chicago Board of Trade closed lower on Wednesday amid forecasts for moisture this week in the US Great Plains hard red winter wheat growing region, traders said.

CBOT wheat closed 1/4 to 3/4 cent per bushel lower in the nearby months and unchanged in the deferreds. March was down 3/4 at $2.65-1/4.

Kansas and Oklahoma, where much of the US winter wheat crop is grown, were expected to receive light precipitation by the end of the week.

However, the anticipated moisture was unlikely to alleviate the persistent dryness that has gripped the region since the wheat crop was seeded last fall, meteorologists said.

Moisture needs will become more critical next month, meteorologists said, as the crop nears the end of its winter dormancy.

Any price upside in wheat should be limited by abundant supplies of wheat worldwide and stiff export competition for the United States from other wheat-producing nations, traders said.

Earlier Wednesday, Tunisia bought 150,000 tonnes of French soft wheat, European traders said.

Cargill Investor Services sold 300 March contracts and E.D. & F. Man International, Lee B. Stern and LFG LLC each sold 200 March, floor sources said.

In spreading activity, Cargill Inc. bought 2,500 March and sold 2,500 May at 11-3/4 cents and CIS bought 1,500 May and sold 1,500 March at 11-3/4 cents.

CBOT wheat futures volume was estimated by the CBOT at 34,000 lots, above the 27,919 lots traded Tuesday.

Wheat options volume was estimated at 3,500 lots.-Reuters