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CBOT wheat closes lower on improved crop weather

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower Wednesday on continued pressure from the recent improvement in crop weather in the US Great Plains hard red winter wheat region, traders said.

CBOT wheat closed 1/2 to 1-1/2 cents per bushel lower, with March down 3/4 at $2.57-1/4.

Pressure also came from overall sluggish US wheat exports and beliefs that widespread snowfall last week in the US Plains winter wheat belt brought some relief from persistent dryness.

Longer-term, however, dryness in major US crop areas remained a concern. Winter wheat in Kansas and nearby states will still need more moisture, especially once it emerges from winter dormancy, meteorologists said.

Meteorologists said this week the La Nina phenomenon was persisting for a second year and is likely to affect US weather in the months ahead, possibly resulting in continued dryness.

Some underpinning came from expectations for export business, they said.

CBOT traders awaited word on possible business from Pakistan, which was said to be seeking about 350,000 tonnes of US wheat this week. In export news late Tuesday and early Wednesday, the US Commodity Credit Corp. said it sought 115,000 tonnes of hard red winter wheat for donation. South Korean interests bought 20,700 tonnes of US wheat via tenders on Wednesday, traders said in a previous Reuters report.

Prudential Securities sold 200 March contracts, Rand Financial Services bought 200 May and sold 100 March and 300 July, Cargill Inc. bought 300 March and Cargill Investor Services bought 200 March.

CBOT wheat futures volume was estimated by the CBOT at 16,000 lots, below the 16,783 lots traded Tuesday.

Wheat options volume was estimated at 6,000 lots.-Reuters