US wheat falls ahead of holiday weekend

• Investors were looking to take some risk out of the market ahead of the US Memorial Day holiday, traders said.
• The benchmark CBOT July soft red winter wheat contract dropped below its 20-day moving average.

CHICAGO: Chicago Board of Trade soft red winter wheat futures fell on a round of profit taking after three straight days of gains.

K.C. hard red winter wheat and MGEX spring wheat also closed in negative territory.

Investors were looking to take some risk out of the market ahead of the US Memorial Day holiday, traders said.

K.C. wheat notched the biggest decline, with the July contract sinking 2.2% on pressure from some much-needed rains that were expected to ease crop stress in Kansas, Oklahoma and Nebraska.

The benchmark CBOT July soft red winter wheat contract dropped below its 20-day moving average.

The contract closed off its lows, with some bargain buying noted after dropping below its five-day moving average.

The most-active CBOT soft red winter wheat contract rose 1.7% this week. K.C. hard red winter wheat futures posted a weekly loss of 1.7% and MGEX spring wheat rose 1.2%.