Wheat lower in thin trade as global supplies weigh

Corn and soybeans also sagged.

As of 12:43 p.m. CDT (1743 GMT), Chicago Board of Trade May wheat was down 7-3/4 cents at $4.22 per bushel. CBOT May corn was down 4-1/2 cents at $3.60-1/4 a bushel and May soybeans were down 3-1/4 cents at $9.41.

Wheat posted the biggest declines on a percentage basis.

"You have still got the problem of huge stocks around, not only domestically but worldwide. It's the limiting factor," said Joe Christopher with the Crossroads Co-op in Sidney, Nebraska.

Wheat futures fell despite larger-than-expected weekly US export sales. The US Department of Agriculture reported export sales of old-crop wheat in the week to March 30 at 568,400 tonnes, above a range of trade expectations.

But the dollar index firmed slightly, theoretically making US grains less attractive on the world market.

"From a technical perspective, it (wheat) was trying to make a good trade, but failed. It's a very thin trade and there is minimal news," said Terry Linn, analyst with Linn & Associates.

Corn also fell to its lowest since Friday, despite strong weekly US corn export sales, topping 1.1 million tonnes.

Some forecasts called for drier weather in the Midwest, where most farmers are waiting to start planting corn.

"It looks to me like there's a planting window later next week.... I would think that by later next week, some guys will be rolling," said Dan Cekander of DC Analysis.

Yet ample global stocks kept a lid on the corn market as well. Despite an expected fall in wheat output, global cereal production in 2017 is forecast to be close to a record level seen in 2016, the United Nations' Food and Agriculture Organization (FAO) said.

CBOT soybean futures drifted lower but stayed above multi-month lows set this week. Concern over rain disruption to Argentina's harvest helped underpin the market.

However, the soybean market is anticipating record production in Brazil which could dominate export trade in coming months and reduce US export sales.