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CBOT wheat closes lower on USDA export data

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower on Friday, burdened by sluggish export demand, traders said.

CBOT wheat closed 1/2 to 1-3/4 cents lower with March down 3/4 at $2.64-1/4.

The US Department of Agriculture weekly export sales report Friday indicated that foreign buyers continued to show only limited interest in US wheat, traders said.

The USDA said net US wheat sales during the week ended Jan. 13 were 254,300 tonnes, 90 percent above the previous week but 22 percent below the four-week average. Estimates ranged from 225,000 to 500,000 tonnes.

Actual wheat exports of 471,300 tonnes were 15 percent under the four-week average.

For the marketing year to date, US wheat sales commitments totalled 19.759 million tonnes, the USDA said, down from 20.015 million at the same time a year ago.

With other major wheat producing countries such as Canada and Australia offering abundant supplies and comparable or lower prices, many of the world's top importers have shunned the United States.

But worries that persistent dryness in the Plains could harm the winter wheat crop should continue to support wheat prices, traders said.

Weather Services Corp. forecast dry conditions for the next seven days for the Plains, including north Texas, Oklahoma and Kansas.

Funds sold 1,000 lots. Rand Financial Services sold 500 March contracts, Prudential Securities sold 300 March and Cargill Investor Services sold 200 March, floor sources said.

CBOT wheat futures volume was estimated by the CBOT at 18,000 lots, below the 20,571 lots traded Thursday.

Wheat options volume was estimated at 5,000 lots.-Reuters