CBOT wheat falls after early rally

CHICAGO: US wheat futures were mostly lower on Thursday as investors locked in profits from a rally earlier this week, traders said.

* Chicago Board of Trade wheat futures rose shortly after the opening bell on Thursday morning but prices quickly turned lower as investors cashed in amid continuing economic uncertainty and market volatility.

* CBOT volume was light, falling below the 30-day and 250-day averages.

* MGEX spring wheat futures rallied despite the losses in CBOT soft red winter wheat and Kansas Board of Trade hard red winter wheat contracts.

* Supplies of high-protein spring wheat remained tight after flooding in key growing areas limited seeding of this year's crop.

* US Agriculture Department said export sales of wheat were 431,200 tonnes in latest reporting week, in line with estimates for 350,000 to 500,000 tonnes.

* Japan bought 79,701 tonnes of food wheat from the United States in regular tender.

* US drought expands across key winter wheat growing areas but rain in forecast for US Plains.

* Tunisia's state grain agency purchased 75,000 tonnes of optional-origin soft milling wheat in tender for 92,000 tonnes - European traders.

Copyright Reuters, 2011