US wheat futures ended lower on Tuesday, weighed down by dull demand, expectations for a record-large world wheat crop, and spillover pressure from a late slide in crude oil and the stock market, traders said. An early short-covering rally that helped lift some contracts more than 2.5 percent evaporated and prices drifted lower amid a lack of buying interest.
Futures have held in a recent trading range, with little enthusiasm to push the market much in either direction. Traders are eagerly awaiting export results. CBOT December soft red winter wheat fell 4 cents to $5.29-3/4 per bushel. Deferreds were down 4-1/2 to 5 cents.
Funds were net sellers of about 1,000 contracts of CBOT wheat, traders said. Funds rolled some of their December short positions to the deferred month, which helped underpin the December. Kansas City Board of Trade December hard red winter wheat ended down 4-1/2 cents at $5.61. Deferreds were down 5 to 6 cents. Minneapolis Grain Exchange December spring wheat settled off 7-1/4 cents at $6.15-3/4 a bushel. Deferreds were down 6-1/2 to 8 cents.
KCBT wheat volume was estimated at 16,804 futures; MGE at 3,558 futures. CBOT wheat volumes not immediately available. Forecasts for a record-large world crop bearish for futures, along with good planting progress and beneficial development weather in the US HRW wheat belt. But rainfall slowing harvest in Australia and dryness stressing wheat crop in Argentina.
US stock markets turned lower ahead of the wheat market close, renewing worries about a deepening global recession and pressuring wheat prices. The International Monetary Fund said Tuesday the number of countries seeking help to cope with a spreading economic crisis was growing every day.
Pakistan likely to issue tender for 500,000 tonnes of white wheat, a Food Ministry official said. Japan was seeking to buy a total 54,476 tonnes of food wheat, and separately was offering to buy 91,000 tonnes of US food wheat. Taiwan millers to buy 42,820 tonnes of US wheat from Toepfer. A Hong Kong cargo ship carrying 36,000 tonnes of wheat bound for Iran was hijacked by pirates in the Gulf of Aden, the official Xinhua agency said on Tuesday.