20000128CBOT wheat ends lower on Plains moisture prospect

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower Wednesday, sinking to nearly two-week lows on commodity fund selling and an improved weather outlook for the US Plains wheat crop, traders said.

CBOT wheat closed 1/2 to 4-3/4 cents lower with March down 4-3/4 at $2.60.

"With a little rain and snow cover, the panic about dry weather may have subsided a little," said Don Roose, analyst for US Commodities in Des Moines, Iowa.

Winter wheat acreage in the central and southern Plains has suffered from below-normal precipitation since seeding last fall, but weather updates Wednesday indicated relief may arrive soon.

Weather Services Corp. projected light snow developing west to east in the Plains starting Wednesday. Snow should continue Thursday from northern Oklahoma into parts of Kansas, with several inches possible.

Melted precipitation will likely total 0.25 to 0.75 inch, with the heaviest over the southern half of the region, Weather Services said.

Lackluster US export demand also weighed on wheat futures, traders said, with only minor business seen overnight. Sri Lanka set a tender that will close on Feb. 17 for 50,000 tonnes of soft and 50,000 tonnes of hard wheat for March/April shipment.-Reuters