Soft red winter wheat futures at the Chicago Board of Trade fell to new contract lows and fresh 18-month lows on Friday, pressured by another reminder of the big global wheat crop this year, traders said. Selling by commodity funds, led by FIMAT Futures sale of 2,000 March led the way down, the traders said. Chicago Board of Trade wheat closed 7-1/2 to 8 cents per bushel lower, with December down 8 at $2.91-1/4 per bushel.
Wheat traders and analysts continue to cite the abundant supply of wheat as the key reason for ongoing pressure on wheat futures prices.
The International Grains Council on Thursday raised its estimate of 2004/05 world wheat production by 1 million tonnes from its October forecast for a record 618 million.
Last season, only 554 tonnes of wheat were produced globally.
The IGC estimated global wheat stocks for 2004/05 at 138 million tonnes.
That's above the ending stocks of 126 million from 2003/04.
The failure of soybean futures to stage a recovery rally on Friday also added pressure to wheat futures prices, traders said.
Only mild underpinning stemmed from a satisfactory export sales pace of US wheat.
USDA Friday said US wheat exports last week totalled 443,400 tonnes, near the high end of estimates for 350,000 to 450,000 tonnes.
Exports were routine overnight, with South Korea buying 50,000 tonnes of optional-origin feed wheat.
Cash basis bids in the Midwest late Wednesday were steady and farmer selling was slow.
Chicago Board of Trade grains futures markets closed early at 12:00 noon CST (1800 GMT) on Friday.
Markets were closed on Thursday, the US Thanksgiving Day holiday, and resumed trading overnight with the e-cbot electronic trade.
December options expired at the close of trading on Friday.
Technical support in the December contract at $2.95 per bushel was broken, driving the contract to a session low of $2.91. Resistance was at $3.08.
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