Wheat Markets Red after Report

Midday wheat quotes are trading lower so far. Chicago futures are down by less than 4 cents across the front months. KC HRW is currently working 11 to 13 3/4 cents in the red. HRS prices are trading with midday losses of 10 cents. USDA left old crop’s cash average price at $8.85/bu, but lowered new crop’s by 30 cents to $7.70. 

The USDA reports made no changes to the old crop wheat S&D balance sheet. The standing estimate is for a 598 mbu carryout, with the June Grain Stocks report to finalize the season. New crop production was boosted by 6 mbu, via an 11 mbu increase for HRW, a 5 mbu decrease to SRW, and a 1 mbu trim for white winter (implying +1 mbu for spring wheat and rounding). That has the crop size at 1.665 bbu, matching the estimate going in. No other changes were made to the domestic wheat balance sheet, as carryout is now figured at 562 mbu. 

USDA set the old crop wheat carryout at 266.66 MMT on the global stage. For new crop USDA raised the EU (+1.5 MMT), Russia (+3.5), Ukraine (+1) and India (+3.5) for new crop production. Chinese imports were also lifted by 1.5 MMT to 12. On net the new crop global carryout was 6.4 MMT higher to 270.7 MMT. 

Jul 23 CBOT Wheat  is at $6.25 3/4, down 1/2 cent,

Sep 23 CBOT Wheat  is at $6.37 1/2, down 1 1/2 cents,

Cash SRW Wheat  is at $5.76 1/8, down 3/8 cent,

Jul 23 KCBT Wheat  is at $7.93 1/4, down 11 1/2 cents,

Cash HRW Wheat  is at $7.54 1/1, down 11 1/2 cents,

Jul 23 MGEX Wheat  is at $8.06 3/4, down 9 cents,

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.