December wheat was up 5 1/4 cents late in the overnight session. Outside market factors look positive today as the weaker US dollar and strength in energy and metal markets helps support. The positive tilt to outside markets plus increased concerns that spring wheat supply may tighten ahead helped to support the market oversight. India appears to have the lowest offer for a 50,000 tonne tender from Bangladesh. Russia and Ukraine look to continue to be aggressive sellers for optional origin tenders, but new tender business is quiet this week. September wheat closed sharply higher on the session yesterday and pushed to its highest level since June 16th. Talk of lower than expected yield for the early spring wheat harvest plus indications of a significant revision lower for acres helped drive September Minneapolis wheat up as much as 31 3/4 cents on the day, and the rally helped support solid gains in Chicago. A preliminary release of the FSA 2011 acreage numbers had traders believing that the USDA may eventually reduce harvested acres for spring wheat by 300,000 to 500,000 acres, with some estimates as high as 1 million acres lost. The data was far from complete, and traders attempted to fill in the holes to determine if the USDA will make some significant changes for the October production report. Producers are required to submit an annual report on all cropland used to their local FSA offices by July 15th in order to be eligible for USDA programs. This data was released on the web to the public this year for the first. In past years, the data was used by various agencies and sometimes used to adjust acreage for the October report for corn and soybeans and the small grains report for wheat, which is released at the end of September. Russia exported 2.6 million tonnes of grain in July and may export up to 2.9 million tonnes this month.
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.
