Wheat Fading into Midweek
The morning wheat trade is working another 3 to 6 cents lower across the U.S. markets so far for Wednesday. The Chicago market ended yesterday 4-6 cents off the session lows with 10 ¾ to 17 ¾ cent losses. KC futures ended down by 9 ¼ to 11 cents. The July HRW/SRW spread now favors KC wheat by 2 cents. Minneapolis spring wheat futures ended the session 4 to 5 ¼ cents lower.
Individual state reports saw crop conditions get a little worse over the last week, as gd/ex ratings in TX were down 3% to 43%, with OK down 5% to 65%, and KS 4% lower to 53%. That dropped their respective crop ratings on the Brugler500 scale by 7 for TX and OK to 312 and 364, with KS down 3 to 338.
Ahead of the WASDE report, trader expectations average to see USDA to tighten wheat stocks by 200k bushels to 657.8 million. That comes as some responses were for a cut of as much as 18 mbu and some were to see an increase of as much as 24 mbu. Global wheat carryout is expected to tighten by 1.3 MMT.
Mar 24 CBOT Wheat closed at $5.45 3/4, down 17 3/4 cents, currently down 17 cents
May 24 CBOT Wheat closed at $5.51, down 13 cents, currently down 4 cents
May 24 KCBT Wheat closed at $5.69 1/4, down 11 cents, currently down 6 3/4 cents
May 24 MGEX Wheat closed at $6.55 1/2, down 4 cents, currently down 4 1/4 cents
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
