-U.S. wheat futures fall on positioning before USDA crop forecasts
--Some traders are booking profits after Thursday's price jump
--The USDA is seen predicting tighter domestic wheat supplies but greater world supplies
CHICAGO--U.S. wheat futures are lower Friday morning, pressured by positioning ahead of a government crop report.
In electronic trading, Chicago Board of Trade futures for July delivery are down 5 3/4 cents or 0.8% at $7.17 3/4 a bushel. Kansas City Board of Trade July wheat is down 4 1/4 cents or 0.5% at $7.75 a bushel. MGEX July wheat is down 5 3/4 cents or 0.7% at $8.19 3/4 a bushel.
Wheat futures are easing after a price jump Thursday, as some traders are selling futures to book profits. The volatile trading comes as market participants position themselves for the U.S. Department of Agriculture's update of its estimates for the supply and demand of agricultural commodities at noon EDT (1600 GMT). Its forecasts for this year's crops will be the agency's first based partly on spring surveys.
The USDA report is expected to predict tighter domestic wheat supplies in the coming year, but a jump in world supplies.
Analysts on average expect the USDA to forecast that wheat stockpiles at the end of the 2013-14 marketing year--on May 31, 2014--will total 627 million bushels, down from an expected 731 million bushels at the end of the current marketing year, according to the average analyst forecast in a Dow Jones Newswires survey.
Analysts on average predicted the USDA will estimate domestic wheat output this year at 2.059 billion bushels, down 9% from last year.
But world wheat supplies are expected to rise as production could rebound in countries that suffered dry weather last year. Analysts on average predicted the USDA's forecast for world wheat stocks at the end of the current marketing year will be 181.5 million metric tons, while stocks at the end of the 2013-14 year will be 186.4 million tons.
Wheat traders continue to monitor weather conditions in the southern Plains...
Source: Argentine Beef Packers S.A.
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