CBOT Wheat : Profit-Taking Hits Markets; MGE Rises Late

Profit-taking and disappointment over the results of an Egyptian tender weighed on U.S. wheat futures Wednesday, although Minneapolis Grain Exchange contracts rose in a late rally. Traders were slightly irked that Egypt bought 60,000 tonnes of wheat and all from Russia. Though, South Korea did buy 67,7000 tonnes of U.S. wheat . Informa is estimating Argentinean wheat output at 15 million tonnes, down 500,000 tonnes from USDA’s Nov WASDE report but not as large a reduction as bulls were hoping. Argentina has suspended wheat export registrations as the government studies damage to the new crop from recent frosts.

MGE December wheat hit and closed at a new all-time high as commercial buyers came in at the close. Chicago Board of Trade March wheat fell 9 cents to $8.85 per bushel. Kansas City Board of Trade March wheat slipped 5 cents to $9.09 1/2, and Minneapolis Grain Exchange March wheat jumped 3 1/2 cents to $9.54 3/4.

Morocco's state wheat buyer, the Office National Interprofessional des Cereales et des Legumineuses, said Wednesday it was tendering to buy 314,000 metric tons of soft milling wheat, of any origin, from importers inside the country. The deadline for bids is Dec. 18, with wheat to be delivered before Jan. 20.

Turkey's state grain board Thursday is slated to hold a tender to buy 200,000 metric tons of soft wheat, and the results are expected to be released Friday. India's State Trading Corporation, meanwhile, might float a wheat tender by next week, a senior company official said Monday.

The U.S. Department of Agriculture is due to release its weekly export sales report Thursday morning. Trade estimates call for wheat sales of 300,000 to 500,000 tons.