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CBOT wheat breaks from corn, soy, ends lower

CHICAGO: Soft red winter wheat futures closed lower at the Chicago Board of Trade Friday as pressure from poor export demand and improved crop prospects outweighed support from higher soybean futures, traders said.

Recent rain in the US Plains wheat areas aided the crop, which will be harvested in about two months. The hard red winter crop from Kansas to Texas had struggled through the fall and early winter, but recent rainfall in Kansas has improved conditions there.

"We've seen crop conditions improve to be about equal to where we were a year ago," said Tim Hannagan, head grain analyst for Alaron Trading Corp., said of the Kansas wheat.

The wheat still needs to improve to match last year's crop, but forecasts for more rain next week may allow for such improvement, traders said.

The slow pace of exports also has been bearish. Sales have been slow and the tender lineup was lacking major potential business, traders said.

Year-to-date wheat export sales have slipped behind last year's pace. On Thursday, USDA reported wheat sales as of March 16 were 24.024 million tonnes since June 1 versus nearly 24.779 million a year ago.

CBOT wheat closed down 3 to 5 cents in nearby contracts with May off 3-1/2 cents at $2.52-3/4 per bushel.-Reuters