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CBOT wheat ends down as rain drops on Plains wheat

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower on Thursday as plentiful rain fell in the US winter wheat region and the export front proved benign.

CBOT wheat closed 2 to 5-3/4 cents lower, with May down 5-1/2 at $2.56-1/4.

"The rain that's moving through the Plains states continues to be of utmost interest to the market. It's been quite a change. We've had a weather premium and now we're taking it out," said Shawn McCambridge, analyst for Prudential Securities.

Abundant amounts of rain were received during the past 24 hours in the US Great Plains hard red winter wheat region and more rain was in the cards, Weather Services Corp. meteorologist Joel Burgio said.

Burgio said rainfall during the past day totalled from 0.75 inch to 2.00 inches with the heaviest amounts in areas that sorely needed the moisture including West Texas.

Additional rainfall was expected in the Plains Thursday with an additional 0.30 inch to 1.5 inches likely over a widespread area, he said.

The export arena continued to smack of keen competition for the export business amid burgeoning supplies.

The US Department of Agriculture's weekly export sales report showed net export sales of US wheat during the week ended March 16 at 314,700 tonnes, below the midpoint of estimates for 200,000 to 500,000 tonnes.

The net sales tally was one-third below the previous week and 36 percent below the four-week average, the USDA said.

Algeria bought 100,000 tonnes of French soft wheat at $112 per tonne, cost and freight, for shipment in April and May, European grain traders said.

One exporter said the wheat had been sold cheaply, adding that the price corresponded to $94 per tonne, free on board, which was $2 or $3 below the market.

In its weekly tender, Japan's Food Agency said Thursday it bought 170,000 tonnes of wheat and added that it would skip next week's tender after completing its wheat and barley buying for May shipment.

Late Wednesday the US Commodity Credit Corp. purchased 10,000 tonnes of white wheat for distribution to Pakistan.

Cargill Inc. sold 300 May contracts, Goldenberg Hehmeyer sold 400 May, Refco Inc. sold 300 May and bought 500 May. O'Connor and Co. bought 1,000 May.

CBOT wheat futures volume was estimated by the CBOT at 24,000 lots, above the 18,888 lots traded Wednesday.

Wheat options volume was estimated at 4,000 lots.-Reuters