September wheat was down 4 3/4 cents late in the overnight session. Outside market factors look negative today with a strong US dollar and weakness in equity and energy markets. Chicago September wheat closed near the highs of the recent consolidation while September Minneapolis wheat pushed to a new high for the move and to its highest level since June. Fears of export competition from Ukraine and Russia and crop upgrades from those countries has helped keep a lid on the Chicago market. The weekly Crop Prgress Report showed that only 13% of the spring wheat crop was harvested as of Sunday, compared to 6% last week and 31% last year. The 10 year average for this time of year is 37%. Spring wheat crop conditions were unchanged for the week at 66% rated good/excellent compared to 82% last year. The report showed 91% of thw winter wheat crop was harvested, compared to 85% last week and 90% last year. Japan seeks 106,432 tonnes at their weekly tender. Harvest in western Canada is just getting underway. September wheat closed 10 cents higher on the session yesterday but well off of the mid-day highs. A sharp drop in the US dollar, new contract highs for corn and a more positive tilt to commodity markets in general helped to support the market. The COT reports on the weekend showed funds still holding a hefty net short position, so many traders saw short-covering as a positive force as well. Weekly export inspections, released during the session yesterday, came in at just 18.44 million bushels, which was well below trade expectations and below the 22.04 million necessary each week to reach the USDA export projection. Saudi Arabia bought 660,000 tonnes of wheat from Australia, EU, Canada and the US. Heat is expected to move back into the plains, and there remain some concerns that the drought conditions will not be alleviated in time for planting the winter wheat crop in another 4-6 weeks. The Chicago wheat market has now closed higher for five sessions in a row and closed at the highest level since August 2nd yesterday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
