US wheat futures close lower

Chicago Board of Trade wheat futures closed lower on Monday on inter-market spreading against the Minneapolis Grain Exchange spring wheat futures market. CBOT May soft red winter wheat unofficially closed down 5-3/4 cents at $6.55, KCBT hard red winter May down 8 at $6.89-1/2 and MGEX May spring wheat up 9 cents at $8.46-1/2.
The lower-than-expected US spring wheat acreage seeding intentions reported by USDA on Friday in its March planting intentions report led to inter-market spreading of the MGEX spring wheat/CBOT and KCBT winter wheat. European wheat prices fell back to little changed levels on Monday as prices in Chicago lost ground after rallying late last week.
The Taiwan Flour Millers' Association issued a tender to purchase 41,650 tonnes of milling wheat of United States-origin, European traders said. Seasonal temperatures and occasional rainfall were expected this week in the US Midwest and the Plains which will boost prospects for the 2012 wheat, corn and soyabean harvests. "Nothing exciting this week, ample moisture with separate storm systems today and tomorrow and again Wednesday and Thursday. Rainfall of around 0.50 inch in the northern Midwest and 0.50 inch to 1.25 inches elsewhere," said Jason Nicholls, meteorologist for AccuWeather. Large speculators were net short 76,603 CBOT wheat contracts during the week ended last Tuesday - CFTC Key support for May at its 50-day moving average of $6.53-1/2 and resistance at the 200-day ma of $6.96-3/4. The nine-day RSI was at 53.