US wheat futures fell on Wednesday as improving crop weather in Europe boosted prospects for a better-than-expected harvest there, traders said. Benchmark Chicago Board of Trade July contract fell 5.3 percent, its biggest daily decline since a 5.4 percent drop on May 11. CBOT prices hit a seven-month low.
Kansas City Board of Trade and MGEX contracts also fell sharply. The MGEX front-month contract fell below its 200-day moving average for the first time since July 2010. Tunisia's state grains agency issued tender to buy 75,000 tonnes of soft million wheat - European traders. Ukraine's grain harvest seen rising to 42.5 million to 44.5 million tonnes from 39.2 million tonnes in 2010.
Heavy rain and hail damaged some wheat acreage in north central and south-west Kansas. European milling wheat futures drop to six-week low on technical selling, improved crop prospects. Northern US Plains seen dry on Wednesday but storms later this week to prevent some farmers from finishing up their spring wheat planting. Southern US Plains seen dry through Friday but thunderstorms expected on Saturday.
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