Soft red winter wheat futures at the Chicago Board of Trade were mostly lower at midsession on Wednesday in a profit-taking setback after front-month July soared to a fresh 11-year high, traders said. The market was overbought and due for a downward correction.
As of 11:20 am CDT (1620 GMT), July wheat was unchanged at $6.08-1/2 per bushel after climbing to $6.25, the highest CBOT wheat spot price since 1996. Deferreds were down 1 to 6-3/4 cents. Earlier, the front five months set contract highs. Prices rose early on concerns about continued harvest delays in the US Plains hard wheat belt. Storms on Tuesday produced 0.5 inch to 1.5 inches of rain from north Texas into south-east Kansas, and more showers were forecast for the same region through Thursday.
Additional support stemmed from news that Egypt bought 55,000 tonnes of US soft red winter wheat along with 60,000 tonnes of Russian wheat. And Iraq issued a new tender to buy 50,000 tonnes of hard wheat. CBOT July wheat stayed above all key moving averages. Its nine-day relative strength index stood at 69 ahead of the open, nearing the overbought technical range of 70 to 100.
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