Wheat Market Holds onto Gains on Turnaround Tuesday
Wheat futures surged on Turnaround Tuesday, with Chicago up 5 to 19 cents, KC HRW up 4 to 11 ¼ cents, and MPLS spring wheat up 2 ½ to 7 cents. Wednesday’s USDA Crop Production report anticipates All Wheat at 1.88-1.884 billion bushels, higher than May’s 1.858 billion. Winter wheat ratings dropped, matching 2021 levels, while spring wheat ratings fell to 72% gd/ex. International purchases include South Korea, Japan, and Egypt.
Wheat futures held higher on Turnaround Tuesday, as contracts were higher across the three markets. Chicago futures were up 5 to 19 cents across the board, led by the front months. KC HRW was up 4 to 11 ¼ cents on the day. MPLS spring wheat futures were firmer, up 2 ½ to 7 cents.
For Wednesday’s USDA Crop Production report, the average trade estimate for All Wheat is 1.88 billion bushels in one survey and 1.884 billion in another. Either would be up from 1.858 billion in the USDA May report. Trade ideas for wheat ending stocks are UNCH for old crop at 688 million ahead of the Grain Stocks report later this month. They are also running 778 million for new crop, mainly on the larger production total.
NASS indicated winter wheat ratings dropping 3 points on the Brugler500 index (using all 5 USDA ratings levels) to 330. That matches 2021 at this date. Much of the deterioration came from the western states, with SRW seeing improved conditions. Spring wheat ratings were down 2% to 72% gd/ex, with the Brugler500 index down 2 to 374. That was due to worsening conditions in MN and the Dakotas.
On international news, South Korea purchased 50,000 MT of US wheat for late August/early September shipment. Japan is tendering for 109,126 MT of wheat from Australia, Canada, and the US, with 57,126 MT US specific. The tender closes on Thursday. Egypt’s GASC purchased a total of 400,000 MT of wheat in their tender on Tuesday, with 100,000 MT from Bulgaria, 180,000 MT from Romania, and 120,000 MT from Ukraine.
Jul 24 CBOT Wheat closed at $6.26 1/2, up 19 cents,
Sep 24 CBOT Wheat closed at $6.46 3/4, up 16 cents,
Jul 24 KCBT Wheat closed at $6.55, up 11 1/4 cents,
Sep 24 KCBT Wheat closed at $6.66, up 9 1/2 cents,
Jul 24 MGEX Wheat closed at $6.78 3/4, up 3 1/2 cents,
Sep 24 MGEX Wheat closed at $6.89 1/4, up 4 3/4 cents,
Source Link : https://www.barchart.com/story/news/26764870/wheat-market-holds-onto-gains-on-turnaround-tuesday
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