Wheat futures on the Chicago Board of Trade fell Thursday on technical selling and position-squaring one day ahead of monthly supply/demand reports due from the US Department of Agriculture, traders said. Analysts expect the USDA on Friday to lower its forecasts of US 2015/16 wheat, corn and soybean ending stocks, while also adjusting its estimates of US corn and soybean production.
The CBOT December wheat contact fell a day after reaching an eight-week high and briefly trading above its 20-day Bollinger range, a sign the market was technically overbought and due for a correction. K.C. hard red winter and MGEX spring wheat futures also closed lower ahead of USDA’s reports.
USDA reported export sales of US wheat in the week ended October 1 at 288,200 tonnes, in line with trade expectations for 175,000-375,000 tonnes. Market underpinned by worries about dry conditions in the portions of the Black Sea region. Russia’s winter grains need rain to improve their condition, the head of the Russian Agriculture Ministry’s crop growing department said. Saudi Arabia’s state wheat-buying agency issued an international tender to purchase 715,000 tonnes of hard wheat. Syria’s state grains agency issued an international tender to purchase and import 200,000 tonnes of soft wheat for bread making, European traders said.