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CBOT wheat futures drop after USDA announces trade aid package

CHICAGO, May 23 (Reuters) - Chicago Board of Trade (CBOT) wheat futures dropped on Thursday on spillover pressure from falling corn prices and after the U.S. Department of Agriculture (USDA) unveiled a trade war aid package that could incentivize more planted acres of all crops. * The Trump administration unveiled the $16 billion farm aid package to offset losses from a trade war with China and said payment rates to farmers would be determined by where they farm rather than what crops they grow. * The package was seen encouraging farmers to plant further beyond prevented planting insurance deadlines if they can, potentially lifting production. * CBOT July soft red winter wheat settled 2-1/2 cents lower at $4.70-1/4 per bushel. The contract hit chart resistance at its 100-day moving average. * K.C. July hard red winter wheat ended down 7 cents at $4.25-1/4 a bushel, while MGEX July spring wheat ended down 9-1/2 cents at $5.34-1/2 a bushel. * Wet weather in the northern Plains may continue to impede spring wheat planting. * Heavy rain across the southern Plains wheat belt has raised concerns that some of the developing hard red winter wheat crop may have been damaged or destroyed. * The USDA said export sales of wheat totaled 393,300 tonnes in the week ended May 16. Analysts' forecasts had ranged from zero to 700,000 tonnes. Last Net Pct Low High Volume chng chng WHEAT SRW JUL9 470.25 -2.50 -0.7 466.25 485.50 77144 WHEAT SRW SEP9 478.25 -2.50 -0.7 474.00 492.00 25901 WHEAT HRW JUL9 425.25 -7.00 -1.9 421.25 439.25 39444 WHEAT HRW SEP9 436.75 -6.25 -1.7 432.50 450.75 20826 SPG WHT JUL9 534.25 -9.50 -1.8 532.00 549.50 4010 SPG WHT SEP9 542.25 -9.75 -1.8 540.50 557.00 2346 (Reporting by Karl Plume Editing by James Dalgleish)

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