Double Digit Rally for Wednesday Wheat
Midday wheat futures are rallying after the export interest. CBoT prices are 12 to 13 cents in the black. KC prices are 18 to 19 ½ cents stronger. Midday MGE prices are up by 14 ½ cents.
The Minneapolis Grains Exchange reported wheat stocks were 20.474 mbu as of 11/26. That was 1.1% tighter than last year.
Pre-report Export Sales estimates for wheat range 200k MT to 500k MT for the week that ended 11/23.
Wire reports showed South Korea booked 95k MT of wheat via tender from U.S. and Canada. Taiwan is tendering for +100k MT of U.S. wheat. Pakistan is on the market for 110k MT of wheat via international tender.
As of Sunday, the EU reports soft wheat exports for the marketing year to date total 12 MMT – down 18% vs. LY. Weakness in EU prices over the past week (more than $10/MT in 4 sessions) came in part because of a Chinese request to delay shipment of some EU wheat purchases until spring.
SovEcon lowered their 24/25 wheat output projection by 1.7 MMT to 89.8 MMT citing declining conditions and lower farm margins.
Estimates going into the StatsCan Crop Production report show traders are looking for wheat output around 31.1 MMT, and between 29.3 and 32.3 MMT. Last year’s wheat production was 29.8 MMT, and USDA is currently using 31 MMT. By class, traders are looking for StatsCan to show 24 MMT for spring wheat and 4.1 for durum.
Dec 23 CBOT Wheat is at $5.49 3/4, up 6 cents,
Mar 24 CBOT Wheat is at $5.79, up 7 cents,
Cash SRW Wheat is at $4.75 5/8, up 11 5/8 cents,
Dec 23 KCBT Wheat is at $6.27 3/4, up 14 3/4 cents,
Cash HRW Wheat is at $5.47 3/8, up 5 1/4 cents,
Dec 23 MGEX Wheat is at $6.90 1/2, down 4 cents,
Source Link: https://www.nasdaq.com/articles/double-digit-rally-for-wednesday-wheat
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