Wheat Spreading on Production Adjustments
Winter wheat futures are down 5-7 cents, with Kansas City HRW down 7-9 cents. MPLS spring wheat futures are up 1-3 cents. The USDA’s report shows a drop in US wheat output by 26 million bushels to 1.982 billion bushels, due to reduced spring wheat and durum, but increased winter wheat production. US wheat balance shrank by 28 million bushels. Global carryout decreased by 0.62 MMT, with mixed changes in EU, Ukraine, and Australia production. Wheat export inspections showed a significant increase, with 649,199 MT shipped for the week ending August 8, more than double last year’s figure.
Wheat showing losses in the winter wheat contracts at midday, with spring wheat feeling some strength. Chicago SRW futures are down 5 to 7 cents. Kansas City HRW contracts are down 7 to 9 cents. MPLS spring wheat futures are posting 1 to 3 cent gains following a production cut.
USDA’s Crop Production report from this morning showed a drop to overall US wheat output of 26 million bushels to 1.982 billion bushels. Most of that was due to a smaller spring wheat crop, down 34 mbu from the July report, with durum down 13 mbu. Winter wheat production was up 20 mbu from the previous month, mainly from HRW and white.
Overall, the tighter crop did shrink the US balance sheet by 28 mbu to 828 mbu. On the world side, the carryout was down 0.62 MMT, as a 2 MMT reduction to the EU production was offset by a 2.1 MMT increase to Ukraine and 1 MMT to Australia.
Wheat export inspections data showed a large 649,199 MT of wheat shipped for the week that ended on August 8. That was more than double the same week last year, as MY exports have totaled 4.219 MMT, 26.7% above last year.
Sep 24 CBOT Wheat is at $5.36 1/4, down 6 1/4 cents,
Dec 24 CBOT Wheat is at $5.59 1/4, down 6 1/2 cents,
Sep 24 KCBT Wheat is at $5.47, down 7 cents,
Dec 24 KCBT Wheat is at $5.61 1/2, down 9 cents,
Sep 24 MGEX Wheat is at $5.91 1/4, up 1 1/2 cents,
Dec 24 MGEX Wheat is at $6.10 3/4, up 2 1/4 cents,
Source Link : https://www.nasdaq.com/articles/wheat-spreading-production-adjustments
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