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CBOT wheat closes narrowly mixed amid weather talk

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed narrowly mixed Tuesday as the market stayed focused on the weather, traders said.

CBOT wheat closed 1/2 higher to 1/4 lower, with March up 1/2 at $2.59-1/4.

"There's not much moisture in the Southwest wheat belt, a little but not of any consequence," said Vic Lespinasse, floor spokesman for A.G. Edwards.

Wheat was pressed early by sluggish exports and prospects for some precipitation in dry areas of the US Plains wheat belt this week, traders said.

Forecasts held slightly improved chances for moisture in parts of the Plains later this week, with light rain or snow possible Friday, Weather Services Corp. said Tuesday.

But the latest six- to 10-day outlook from the National Weather Service projected normal precipitation for Kansas and north Texas and no precipitation for Oklahoma for Feb. 13-17.

Those areas comprise the heart of the hard red winter wheat belt, a region that has endured below-normal precipitation since the crop was seeded last fall.

"The crop continues to suffer from dryness in western Kansas with spotty stands," Weather Services Corp. said in a report Tuesday.

The wheat market otherwise had little fresh fundamental guidance. No significant export activity was noted overnight.

Technically, March CBOT wheat faces resistance around $2.60 and support around $2.50, according to The Linn Group, a Chicago trading firm.

FIMAT Futures bought 300 May contracts, Cargill Investor Services (CIS) bought 500 March, sold 400 December and Cargill Inc. and Farmers Commodities Corp. each sold 200 March, pit sources said.

CBOT wheat futures volume was estimated at 15,000 lots, below the 24,021 lots traded Monday.

Wheat options volume was estimated at 4,200 lots.-Reuters