Chicago Board of Trade wheat futures were lower early on Thursday, setting back on technical weakness and declines in soyabeans, traders said. As of 10:50 am CST (1650 GMT), CBOT March wheat was down 3-1/4 cents at $3.28-3/4 and May was down 4 cents at $3.36-1/2. Cargill Investor Services sold 200 May and 200 July contracts, and FIMAT Futures sold 100 May, traders said.
One bearish technical sign was the nine-day relative strength index for CBOT May wheat, which closed on Wednesday at 72. That's above the benchmark level of 70 that chartists view as one indicator of an overbought market.
The CBOT soyabean pit continued to influence the direction of the grain floor. CBOT May soyabeans were down 6-1/2 cents at $6.20-3/4 a bushel on a setback from recent sharp rallies.
In response to market volatility, the CBOT raised margins to trade corn, wheat, soyabeans, soyameal and soyaoil, effective with Sunday night's trade.
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