CBOT wheat futures fall 2 percent

Chicago Board of Trade wheat futures fell on Tuesday on plentiful global supplies and ideas that US wheat is over-priced relative to other origins, especially given strength in the dollar, traders said. Benchmark CBOT March wheat fell more than 2 percent but held above chart support at its 50-day moving average of $5.78 a bushel.
K.C. hard red winter and MGEX spring wheat futures posted smaller declines. Potential freeze damage this week to the dormant Midwest soft red winter wheat crop has been largely factored into the market, traders said. Expectations that commodity index funds will sell wheat as part of annual rebalancing efforts added pressure. Traders expect two major funds to sell 9,000 to 12,000 contracts of CBOT wheat and 3,000 to 4,000 contracts of K.C. wheat, along with roughly 25,000 contracts of corn, over five sessions starting Thursday.
Analysts expect USDA on Monday to report a slight increase in US December 1 wheat stocks from a year ago. Analysts expect USDA on Monday to report a slight expansion in US winter wheat seedings versus a year ago, with most of the increase in hard red winter wheat. Seedings of soft red winter wheat are seen as down from a year ago.