Wheat Bulls Push Higher After Stocks Cut
Wheat futures saw gains following a USDA stocks reduction. Chicago SRW, KC HRW, and MPLS spring wheat contracts posted increases, supported by a rise in U.S. wheat exports by 25 million bushels to 850 million. U.S. ending stocks decreased to 795 million bushels. However, global wheat stocks rose slightly to 257.88 million tons, mainly due to a 1.16 million-ton increase in carryover. Japan is also set to tender 112,889 MT of wheat.
The wheat complex posted gains across the three markets on Tuesday following a USDA stocks reduction. Chicago SRW futures were 3 to 5 1/4 cents higher across most contracts with Dec up ¾ cent. KC HRW contracts were up 3 3/4 to 7 cents on the day. MPLS spring wheat was steady to 3 1/2 cents higher at the close.
The monthly WASDE report gave the bulls a somewhat friendly surprise as US wheat exports were up 25 mbu to 850, with imports up 5 mbu. US ending stocks were down 20 mbu to 795 mbu as a result, vs. the trade looking for the number to remain steady. Despite the tighter US number, the world stocks were 0.31 MMT higher at 257.88 MMT. Much of that was due to a 1.16 MMT increase to carryover, as EU production was down 1.3 MMT.
Japan has issued a weekly tender for 112,889 MT of wheat from the US, Canada, and Australia, with 58,986 MT US specific. The EU commission shows the marketing year to date (since July 1) soft wheat exports at 10.24 MMT as of December 8, compared to the 14.41 MMT from last year.
Dec 24 CBOT Wheat closed at $5.42, up 3/4 cent,
Mar 25 CBOT Wheat closed at $5.61 3/4, up 3 cents,
Dec 24 KCBT Wheat closed at $5.49 1/4, up 7 cents,
Mar 25 KCBT Wheat closed at $5.65 3/4, up 7 cents,
Dec 24 MGEX Wheat closed at $5.82 1/4, unch,
Mar 25 MGEX Wheat closed at $6.06 1/2, up 3 1/4 cents.
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Source : Barchart
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