20000323

CBOT wheat ends down on fund selling, Plains rain

CHICAGO: Soft red winter wheat futures at the Chicago Board of Trade closed lower Tuesday on fund selling tied to improved crop weather in the US Great Plains hard red winter wheat growing region.

CBOT wheat closed 2 to 6 cents lower, with May down 6 at $2.60-1/4.

"It's all coming from the moisture in the Plains, and the Kansas and Oklahoma crop conditions have gotten better," said Ron Kucha, floor spokesman for O'Connor and Co.

Recent rainfall boosted crop conditions in key US winter wheat growing states and more rainfall was in the cards.

Weather Services Corp. meteorologist Joel Burgio said early Tuesday that rainfall this week would help the crop in the US Great Plains hard red winter wheat region.

"There will be light showers Tuesday, with showers and rainfall in all areas Wednesday through Thursday," he said.

About 0.50 inch to 1.50 inches of rain was expected Wednesday and Thursday in the key US Plains wheat states, with from 70 percent to 90 percent of the Wheat Belt receiving rain.

More rainfall was expected beginning Sunday and continuing Monday, he said.

On the export front, Algeria will tender on Tuesday for 100,000 tonnes of optional origin soft wheat for April-May shipment, an Algerian official said.

The tender was for 50,000 tonnes soft wheat for shipment between April 16 and 30 and 50,000 tonnes for shipment between May 1 and 15, the official said.

Pakistan said it had no plans to import wheat in the fiscal year that starts in July because of higher domestic output and better distribution.

Agriculture Minister Shafqat Jamot said Pakistan had imported 1.6 million tonnes of wheat in the current fiscal year that ends in June, and had decided last month not to import 700,000 tonnes more even though there was government approval.

Funds sold 3,000 lots. O'Connor and Co. and Cargill Investor Services each sold 800 May, USA Trading sold 500 May, ABN AMRO sold 300 May, Cargill Inc. bought 600 May, and FIMAT Futures bought 700 May and sold 200 May, traders said. In wheat options, FIMAT bought 1,800 May $2.60 puts at 6-1/2 cents, traders said.

CBOT wheat futures volume was estimated by the CBOT at 25,000 lots, above the 16,074 lots traded Monday.

Wheat options volume was estimated at 10,000 lots.ÑReuters