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CBOT wheat closes lower on export news, setback

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower on Tuesday, hit by disappointing export news and technical setback from last week's gains, traders said.

CBOT wheat closed unchanged to 1 cent lower, with March down 1/2 at $2.64-1/2.

On Monday, Egypt's main wheat buyer said gradual rises in world prices had prompted him to cancel last week's tenders for 60,000 tonnes of any type of US wheat and 60,000 tonnes of French or Australian wheat.

The amount of wheat in question was relatively small, but stood as another reminder of the upper hand held by world wheat buyers over sellers, amid abundant global supplies.

Traders said the CBOT wheat market was poised for correction lower after ending Friday at a two-month high. March futures closed at $2.65, for the contract's highest settlement since $2.66-3/4 on Nov. 16.

The latest Commodity Futures Trading Commission Commitments of Traders reports indicated that speculative commodity funds recently reduced a net short position in the wheat market, traders said.

The CFTC said that as of Jan. 11, noncommercial interests, which are primarily funds, held 25,709 short futures contracts in wheat and 19,548 longs, for a net short of 6,161. As of Dec. 28, the net noncommercial short was 12,913 contracts.

Funds sold 200 lots. LFG sold 400 March, E.D. & F. Man International bought 400 March.

CBOT wheat futures volume was estimated at 18,000 lots, below the 36,028 lots traded Friday.

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