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CBOT wheat lower at midsession on profit taking

CHICAGO: CBOT wheat futures were lower at midsession on light volume profit taking after Wednesday's run to contract highs, traders said.

"There is just a lot of profit taking today. We were due for a correction," said Vic Lespinasse of Dean Witter Reynolds.

Some traders also cited reports of an estimate by Sparks Companies for 1996 U.S. wheat production at a level well above last year's outturn and above trade expectations as lending pressure.

The May/July spread trade was choppy on China news.

"China rolled more wheat out of old crop into new crop and that's a little bearish for old crop," Lespinasse said.

USDA early Thursday said China bought 200,000 tonnes of 1996-97 U.S. soft red winter wheat but cancelled 200,000 tonnes of 1995-96 SRW.

Concerns about continued harsh weather in the U.S. winter wheat growing region continues to underpin the market. Also a recovery from the day's lows set early in corn helped shore up the wheat market, the traders said.

At 1108 CST, wheat was unchanged to two cents per bushel lower, with May unchanged at $5.23.-Reuter