Wheat Posts Another Round of Losses on Tuesday
Wheat futures fell across all major U.S. contracts on Tuesday. Chicago SRW dropped 7–9 cents, Kansas City HRW lost 10–11 cents, and Minneapolis spring wheat declined 8–10 cents. Ahead of Thursday’s USDA report, analysts expect wheat production to rise 3 mbu to 1.924 bbu, mainly from winter wheat gains. EU soft wheat exports remain far below last year’s pace.
Wheat is trading with losses across most contracts on Tuesday. Chicago SRW futures were 7 to 9 cents lower across the front months on Tuesday. Kansas City HRW contracts were 10 to 11 cents in the red. Minneapolis spring wheat futures saw 8 to 10 cent losses.
A Bloomberg survey of analysts shows expected wheat production ahead of Thursday’s crop progress report to be up 3 mbu to 1.924 bbu. Much of that is likely going to come from the winter wheat crop which is expected to rise nearly 8 mbu to 1.389 bbu. The HRW crop is seen up 4 mbu to 755, with SRW 2 mbu higher to 346 and the white wheat crop steady at 253. Old crop wheat stocks are expected to be up 4 mbu to 845, with the new crop total up 2 to 925 mbu.
The US winter wheat crop was tallied 4% harvested by Sunday, behind the 7% 5-year average. Each of the 18 reported states were behind normal. Ratings were up 2% to 54% gd/ex, as the Brugler500 was up 5 points to 341. The largest shift was noted in NE (+77 points), as gd/ex ratings jumped 20% to 43% and poor/very poor down 35% to 13%. Other notable improvement was TX (+20), with CO (+19), and OK (+9). Ratings in MT were down 38 points, with OR falling and WA down 12.
Crop Progress data had the spring wheat crop conditions improving another 3% to 53% gd/ex as the Brugler500 was up 7 points to 347. Much of that came in ND (+18), with SD (+10), MN (+6), and ID (+2) all improving. Deterioration was noted in MT and WA, losing 5 points.
EU soft wheat export have totaled 19.49 MMT according to the EU Commission data from July 1 to June 8, which lags the 29.23 MMT from the same period last year.
Jul 25 CBOT Wheat closed at $5.34 1/2, down 7 1/2 cents,
Sep 25 CBOT Wheat closed at $5.48 3/4, down 8 1/4 cents,
Jul 25 KCBT Wheat closed at $5.27 1/4, down 10 1/4 cents,
Sep 25 KCBT Wheat closed at $5.40, down 10 1/4 cents,
Jul 25 MGEX Wheat closed at $6.13 1/4, down 9 1/4 cents,
Sep 25 MGEX Wheat closed at $6.23 3/4, down 8 3/4 cents.
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Source : Nasdaq.com
