US wheat ends lower after USDA forecasts big crop
US wheat futures closed lower after the US Department of Agriculture forecast significant increases in US and world wheat production for 2008/09.
By Agencies |
CHICAGO:US wheat futures closed lower on Friday after the US Department of Agricultureforecast significant increases in US and world wheat production for 2008/09,traders said.
USDA in its Maysupply/demand report pegged world wheat production at 656.01 million tonnes, up8 percent from 606.4 million in 2007/08.
The agency put the 2008 USwinter wheat crop at 1.778 billion bushels, up 17 per cent from last year, andall-wheat production at 2.392 billion, up 16 percent.
USDA also projected US wheatending stocks for 2008/09 at 483 million bushels, above the average tradeestimate of 428 million and more than double the 2007/08 carryout of 239 millionbushels.
A retreat in cornfutures added pressure. Corn closed mixed, with nearby months lower onprofit-taking.
At the ChicagoBoard of Trade, soft red winter wheat for July delivery ended down17-1/2 cents at $8.04-1/2 per bushel. Back months were down 6 to 21-1/2 cents.Front-month May , which expires next week, ended down 17-1/2 cents at$7.91-1/2.
Funds sold 3,000CBOT wheat contracts, traders said. At the Kansas City Board of Trade, July hardred winter wheat fell 22-1/2 cents to close at $8.45-1/2 a bushel, with backmonths down 5 to 23 cents. Front-month May fell 19 cents at $8.81.
At the Minneapolis GrainExchange, July spring wheat closed down 1/4 cent at $10.03 abushel, underpinned by bull spreading and firm cash markets for old-crop springwheat. Back months fell 14-1/4 to 25 cents, while spot May was down 15 cents at$11.95.
Temperatures innorthwest Kansas could drop below freezing this weekend, but winter wheat in thearea was not expected to sustain much damage because of itsimmaturity.
Annual crop tourlate Thursday pegged Kansas wheat production at 379.1 million bushels, Kansasyield at 43.3 bu/acre.
USDA in its Maysupply/demand report pegged world wheat production at 656.01 million tonnes, up8 percent from 606.4 million in 2007/08.
The agency put the 2008 USwinter wheat crop at 1.778 billion bushels, up 17 per cent from last year, andall-wheat production at 2.392 billion, up 16 percent.
USDA also projected US wheatending stocks for 2008/09 at 483 million bushels, above the average tradeestimate of 428 million and more than double the 2007/08 carryout of 239 millionbushels.
A retreat in cornfutures added pressure. Corn closed mixed, with nearby months lower onprofit-taking.
At the ChicagoBoard of Trade, soft red winter wheat for July delivery
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Funds sold 3,000CBOT wheat contracts, traders said. At the Kansas City Board of Trade, July hardred winter wheat fell 22-1/2 cents to close at $8.45-1/2 a bushel, with backmonths down 5 to 23 cents. Front-month May fell 19 cents at $8.81.
At the Minneapolis GrainExchange, July spring wheat
Temperatures innorthwest Kansas could drop below freezing this weekend, but winter wheat in thearea was not expected to sustain much damage because of itsimmaturity.
Annual crop tourlate Thursday pegged Kansas wheat production at 379.1 million bushels, Kansasyield at 43.3 bu/acre.
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