20000301

CBOT wheat ends lower on weather, deliveries

CHICAGO: Chicago Board of Trade soft red winter wheat futures closed lower on Monday with selling prompted by beneficial rain in Plains wheat areas, weak export demand and expected large deliveries on first notice day on Tuesday, traders said.

CBOT wheat closed 3-1/2 to 1/2 cents per bushel lower, with on March down 3-1/2 at $2.44-1/2 and May down 2-1/2 at $2.56-3/4.

Rain fell on dry Kansas wheat areas last week and early this week, which should help cure much of the wheat that had been hurt by dry conditions since last fall. Also, dry wheat areas from the Texas panhandle to southern Kansas were forecast to receive significant rainfall on Thursday, forecasters said.

While conditions appeared to be improving for the crop, analysts and traders said demand for wheat remains poor.

"The Egyptian business was very disappointing," said Charlie Sernatinger, vice president of Chicago grain sales for E.D.& F. Man International. "There are no mega-tenders on the horizon."

Egypt bought 60,000 tonnes of US soft white wheat but also bought 120,000 tonnes of French soft red wheat. At $91.00 per tonne, Sernatinger said the French wheat cost $4.00 to $5.00 per tonne less than comparable US wheat.

After the close, US Wheat Associates reported China bought 50,000 tonnes of US wheat, but that amount was expected to be too small to excite traders.

Light demand for US wheat was the primary reason analysts expect 10 million to 15 million bushels of wheat will be posted for delivery against the CBOT on March contract on first notice day on Tuesday.

"They will be huge, because there is no place to go with it," said Sernatinger of the deliveries.-Reuters