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CBOT wheat closes lower on moisture outlooks

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower on Tuesday, burdened by improved moisture prospects for the parched US Plains winter wheat belt, traders said.

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

Recent forecasts indicated that the central and southern Plains may receive moisture relief soon, traders said. Wheat in that region has suffered from below-normal precipitation since the planting season last fall.

The latest 6- to 10-day outlook from the National Weather Service projected normal to above-normal precipitation and normal temperatures for Kansas, Oklahoma and north Texas for Jan. 30 to Feb. 3.

Weather Services Corp. said a storm system was expected to move through the Plains Thursday, leaving from 1/4 to 3/4 inch of precipitation in northern Texas, Oklahoma and southern Kansas.

Only routine and at times sluggish export demand also weighed on prices.

"Export sales have been slow and yesterday's weekly (USDA) export inspection number of only 16.2 million bushels came in below trade expectations," a report from Chicago trading firm R.J. O'Brien & Associates said Tuesday.

R.J. O'Brien pegged technical resistance for March wheat at $2.69 and support at $2.62-1/2.

Funds sold 900 lots. Refco Inc. sold 800 March contracts, FIMAT Futures Inc. bought 200 March and 200 July and Cargill Inc. bought 300 March, floor sources said.

CBOT wheat futures volume was estimated by the CBOT at 17,000 lots, below the 27,970 lots traded Monday.

Wheat options volume was estimated at 4,000 lots. -Reuters