Wheat Slip Lower Ahead of USDA Data Day
Wheat futures closed lower on Thursday, with Chicago SRW down 2-3 cents, KC HRW steady, and MPLS spring wheat down 1-2 cents. The weekly Export Sales report is delayed, with sales expected between 150,000-500,000 MT. Winter Wheat Seedings report projections include 33.366 million acres of winter wheat, and global ending stocks are estimated at 257.86 MMT.
The wheat market saw some late session buying off the midday lows on Thursday, though contracts still closed lower on pre-report position squaring. Chicago SRW futures were down 2 to 3 cents in the nearby contracts on the day. KC HRW posted steady to fractionally lower trade across most contracts at the close. MPLS spring wheat futures were 1 to 2 cents in the red on the session.
The weekly Export Sales report is delayed until Friday as the government offices are closed today for a National Day of Mourning for President Carter’s funeral. Analysts are looking for 150,000 to 500,000 MT of wheat sales in the week ending on January 2.
Ahead of the Winter Wheat Seedings report on Friday, the trade is expecting USDA to show all winter wheat acreage at 33.366 million acres, down 24,000 acres from last year if realized. HRW is expected to be 23.73 million, with SRW at 6.14 million acres and white at 3.49 million acres. December 1 Grain Stocks data will also be released, with the trade looking for 1.565 bbu in wheat stocks. That would be up 144 mbu from last year if realized. The ending stocks projection is expected to be up 4 mbu to 799 mbu.
World wheat ending stocks are estimated at 257.86 MMT, which would be nearly even with the 257.88 MMT from last month.
Taiwan mills purchased a total of 114,650 MT of wheat in their tender from the US overnight.
Mar 25 CBOT Wheat closed at $5.34, down 2 1/4 cents,
May 25 CBOT Wheat closed at $5.46, down 2 1/2 cents,
Mar 25 KCBT Wheat closed at $5.50 1/4, unch,
May 25 KCBT Wheat closed at $5.58 1/2, down 3/4 cent,
Mar 25 MGEX Wheat closed at $5.83 1/2, down 1 1/2 cents,
May 25 MGEX Wheat closed at $5.91 3/4, down 2 cents.
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Source : BarChart
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