CBoT wheat futures down

Soft red winter wheat futures at the Chicago Board of Trade settled mostly lower on Tuesday in sympathy with steep declines in corn and soybeans, traders said. Continued profit-taking after the retreat from Friday's multiyear highs added pressure, along with forecasts for improving wheat harvest weather in the southern US Plains.
But trade was choppy, with short-covering lifting the market into positive territory at times. Concerns about tight global wheat supplies underpinned values. "Trade was erratic. We've had a precipitous sell-off," one CBoT wheat trader said, noting that the benchmark September wheat contract fell 76 cents from its life-of-contract high of $6.50 on Friday, to its session low on Tuesday of $5.74. CBoT July wheat ended up 2 cents at $5.71-1/2 per bushel, with September down 1/4 cent at $5.83. Back months were down 5-1/2 to up 1 cent.
Commodity funds were even on the day, traders said. Volume was estimated by the CBoT at 57,499 wheat futures and 8,607 options. The CBoT will be closed for the US Independence Day holiday on Wednesday and will reopen for the electronic night session.
Fresh export demand emerged after Tuesday's close, with Egypt's main wheat buyer seeking 55,000 to 60,000 tonnes of US, French, Australian, German, Argentine and/or Kazakhstan wheat for shipment August 5-15. Tender results were expected on Wednesday and could shape CBo T wheat market direction on Thursday. Expectations of a pickup in the hard red winter wheat harvest hung over the market. Rains that have disrupted harvesting in the southern US Plains for several weeks should diminish by this weekend, DTN Meteorlogix said.
Late on Monday, the US Department of Agriculture said the US winter wheat harvest was 40 percent complete as of July 1, lagging the five-year average of 54 percent. However, in the Midwest, the harvest pace was in line with or ahead of the average in some key soft red winter wheat states, including Illinois, Indiana and Ohio.
Export news was routine overnight. Japan said it would seek 100,000 tonnes of US, Canadian and Australian wheat at its weekly tender, and South Korean millers were seeking a total of 44,300 tonnes in two tenders.
Deliveries on the CBoT July contract were light at 27 lots, and a Banc of America customer was the main stopper with 20. September stayed between key support at its 50-day moving average of $5.42-1/2 and resistance at the 20-day MA of $5.93-3/4.