December wheat was up 1 cent late in the overnight session. Outside market forces look somewhat negative today with higher trade in the US dollar and some weakness in energy and equity markets. Strength in soybeans and corn overnight helped to support. The weekly Crop Progress Report report showed that 96% of the winter wheat crop was planted as of Sunday, compared to 94% last week and 96% last year. The 10 year average for this time of year is 93%. The report also showed that 50% of the winter wheat crop was rated good/excellent compared to 49% last week and 46% last year. The 10 year average for this time of year is 57%. The lowest percent rated good/excellent was 42% in 1991. The Commitments of Traders reports as of November 8th showed non-commercial traders were net short 36,291 contracts, a decrease of 12,285 contracts for the week. The aggressive short-covering trend is seen as a short-term positive force. Non-commercial and nonreportable traders combined held a net short position of 58,928 contracts, down 11,223 for the week. December wheat closed slightly lower on the session yesterday but up 5 1/2 cents from the early lows. A strong US dollar and weakness in corn seemed to pressure the wheat market. A bearish tilt to the USDA supply/demand updates last week continues to pressure wheat, but some traders are concerned that the marketis still showing an oversold condition in the weekly COT updates and that this could limit the decline. Weekly export inspections came in at 10.35 million bushels, which was well below trade expectations and below the 18.7 million necessary each week to reach the USDA projection for the year. Algeria passed on a tender to buy 50,000 tonnes of optional origin wheat, and Taiwan is tendering to buy 34,800 tonnes of US wheat. Australia sold 150,000 tonnes of wheat to Saudi Arabia. Ukraine is selling feedwheat to Malaysia.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.