Soft red winter wheat futures at the Chicago Board of Trade closed lower on Friday on profit taking ahead of the weekend, traders said.
Wheat rallied sharply late on Thursday and gained at the open on Friday, a scenario that set the market up for a setback as local traders and several other key speculators exited their positions and banked profits, pit sources said.
CBOT wheat closed 1/2 to 5 cents per bushel lower, with March down 2-1/2 at $3.78-1/2.
Shortly after the lower close, Egypt's GASC said it was seeking offers to buy 50,000 to 60,000 tonnes of US, French, Australian and/or Canadian wheat due on Saturday.
Trading volume was moderate, estimated at 20,268 futures and 3,800 options.
Wheat entered the trading session on Friday on a strong note, with prices boosted late this week by the European Union's decision to sell only 83,836 tonnes of intervention wheat into its domestic market out of 700,000 tonnes approved for sale.
A drought this summer cut into European wheat stocks and reduced the amount of wheat the EU is offering into domestic and export channels.
Exports overnight were quiet and centered on news South Korea bought 17,100 tonnes of US wheat.
But hopes remain that China will buy more US wheat with a Chinese wheat-buying delegation set to visit the United States during the week of February 15.
Moisture this week in the US Great Plains hard red winter wheat region may limit gains in new-crop July, especially in the KCBT July contract.
However, much more precipitation is needed for the wheat crop in the drier areas of western Kansas, eastern Colorado and western Nebraska.
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