CBOT wheat ends down on better Europe weather

Friday, 03 February 2012 01:15

CHICAGO: Chicago Board of Trade soft red winter wheat futures closed lower on Thursday on prospects for moderating weather soon in Europe and on a profit-taking setback after the rally in the previous session to a 4-1/2 month high on worries about winterkill in Europe's winter wheat region.

* European benchmark wheat prices retreated on Thursday from a seven-month high the day before, in step with a similar slide in Chicago, as dealers said the rally this week on fears that cold weather would damage crops had been overdone.

* Outlooks for moderating weather in Europe this month, which should provide some relief to the wheat crop from the blast of bitter cold weather this week.

* State forecaster in Moscow said temperatures in European Russia will be just 1 to 2 degrees below multi-year averages in February offering respite for crops in Russia's south which have been put at risk by unusually cold weather.

* USDA in its weekly export sales report on Thursday said 554,100 tonnes of US wheat was sold for export last week, within the range of estimates for 400,000 to 600,000 tonnes.

* Bitter cold temperatures continue to affect winter wheat crop prospects in Europe with winterkill seen impacting one-third of Ukraine wheat and there will be scattered damage in south Russia, according to Commodity Weather Group (CWG).

* Key support for the March contract is at its 100-day moving average of $6.45-1/2. The nine-day RSI was at 63.