Chicago Board of Trade wheat futures were dragged down on weather concerns on Monday, and suffered from spillover from trader concerns on the overall grain sector that had corn and soybean contracts dropping to new lows. Weather forecasts for top wheat producing regions had traders juggling a mixed bag: from bearish cues for rainfall in western Australia, to bullish cues for dry weather still troubling other top grain production areas.
Wheat futures also were pressured by trader concerns in the corn and soybean futures markets: Elevated trade tensions between the United States and major trading partners - including China, Mexico and Canada - weighed down grain prices in general amid concerns about slower export demand.
After the CBOT market closed, Egypt's state buyer GASC set a tender to buy an unspecified amount of wheat from global suppliers for July shipment. CBOT's July soft red winter wheat ended the day down 5-1/2 cents, closing at $5.14-1/2 a bushel. K.C. hard red winter wheat closed down 3-1/2 cents, to $5.34-3/4 a bushel. Minneapolis spring wheat closed down 2-3/4 cents, to $5.89-3/4 a bushel.
One trader said that Monday's wheat market found "limited support" from forecasts from continued dryness in southern Russia, as well as excessive wetness in Siberian spring wheat areas that is deteriorating that region's wheat production potential.
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