Wheat futures on the Chicago Board of Trade fell to a two-week low on Friday on technical selling and ideas that US supplies are uncompetitive on the world market, traders said. CBOT July wheat fell 38-1/4 cents per bushel for the week, or more than 7 percent, the biggest weekly drop for a most-active contract since July 2014. Yet for the month, the contract gained 3 cents, buoyed by mid-month short-covering.
K.C. hard red winter and MGEX spring wheat futures also closed lower on Friday, with MGEX wheat posting the biggest losses. Additional pressure noted from concerns about burdensome US supplies of feed-grade wheat following excessive rains in the southern Plains wheat belt. Also bearish, forecasts called for drier conditions in that region next month, when the harvest should begin. The US Department of Agriculture reported export sales of US wheat in the latest week at 42,500 tonnes for 2014/15 and 253,600 tonnes for 2015/16, roughly in line with expectations.