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CBOT wheat closes lower on soya losses, weather

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower on Monday on a fall in soyabeans along with perceptions that snow last week provided relief to dry conditions in the U.S. Plains wheat belt.

CBOT wheat closed 1/2 to 3-3/4 cents lower, with March down 3-1/2 at $2.56-1/4.

Melting snow from last week should provide the equivalent of roughly 1/4 to 3/4 inch of rain in Oklahoma and 1/4 inch in Kansas, said Joel Burgio, senior agricultural meteorologist for Weather Services Corp. Lingering snow fell in some areas of the southern Plains over the weekend.

Winter wheat in Kansas and Oklahoma has suffered from below-normal precipitation since it was planted last fall. While last week's moisture was beneficial, more was needed, Burgio said. Forecasts for this week held only limited precipitation chances for the Plains.

"It did help to replenish soil moisture," Burgio said. "It's not going to change anything dramatically, but every little bit helps."

Wheat futures also were hit by uninspiring U.S. exports, which continued to suffer from competition from other world wheat growers.

"Exports remain poor and there is a lack of good fundamental news," said Brian Scott, a trader with Chicago trading firm R.J. O'Brien & Associates, in a report Monday. "The bigger picture in wheat remains negative right now, with world stocks as high as they are. Weakness from the corn and beans will do nothing to help wheat prices early this week."

The latest Commitments of Traders reports from the Commodity Futures Trading Commission indicated that speculative funds reduced the number of short positions held in the wheat market.

The CFTC said noncommercial interests, which are primarily funds, held 22,344 short wheat futures contracts and 20,622 longs as of Jan. 25, for a net short of 1,722. As of Jan. 11, the net noncommercial short was 6,161.

Commodity funds sold 2,000 contracts up to late trading, floor sources said. Rand Financial Services sold 500 March, FIMAT Futures bought 800 March and DT Trading sold 200 March.

CBOT wheat futures volume was estimated by the CBOT at 20,000 lots, below the 21,070 lots traded Friday.

Wheat options volume was estimated at 6,000 lots.-Reuters