CBOT wheat futures recover on short covering

CHICAGO, Dec 18 (Reuters) - Chicago Board of Trade wheat futures found their footing on Thursday on short covering, but hovered near eight-week lows after China cancelled purchases from the United States and large harvests in Argentina and Australia added more grain to a well-supplied market, analysts said.

• The USDA said on Wednesday that exporters had cancelled sales of 132,000 metric tons of U.S. white wheat to China. The reason for the cancellation was not known, but traders said Argentine wheat was available at lower prices.

• Chinese state-owned agribusiness COFCO International said on Saturday it was loading its first bulk commercial shipment of Argentine wheat bound for China, opening a new trade route between the two countries and adding to pressure on Chicago wheat futures.

• Progress in peace negotiations to end the war in Ukraine has weighed on wheat prices, but a ceasefire may still be some way off.

• CBOT March soft red winter wheat WH26 settled 1-1/2 cents higher at $5.07-3/4 per bushel.

• K.C. March hard red winter wheat KWH26 ended 9-1/4 cents higher at $5.17 a bushel.

• Minneapolis March spring wheat MWEH26 ended unchanged at $5.62 a bushel.