Wheat Weakening Into Weekend

Following the runnup from the early week’s trade, wheat prices look to pull back with Friday looses of 12 cents. At the close for the Thursday wheat market, futures were another 0.4% to 1.4% higher. CBT SRW faded from the intra day highs but still went home up by 3 3/4 to 7 cents. Net new buying was noted, with preliminary OI rising 7,143 contracts. KC HRW ended the day with 10 to 12 1/2 cent gains. December HRW is now $1.64 1/4 off the August low. MPLS futures ended the day with 10 to 14 cent gains. At the high, May HRS prices were 11 cents under the $10/bu mark. 

The International Grains Council expects 22/23 world wheat production to reach 792 MMT. That is up 14 MMT from their prior estimate and is now up 10 MMT from last year. Stocks absorbed most of the increased availability with an 11 MMT higher stockpile of 286 MMT projected. 

USDA reported 183,467 MT of wheat was booked for Export during the week that ended 9/15. That was down 16% from last week, below the expected range, and about half of the same amount from the same week last year. Indonesia and China were the largest net buyers, and white wheat was the most sought after variety. Accumulated wheat commitments were 10.4 MMT as of 9/15. That is down 4% from last year’s pace and is the lowest since 09/10. 

Dec 22 CBOT Wheat  closed at $9.10 3/4, up 7 cents, currently down 16 cents

Mar 23 CBOT Wheat  closed at $9.22, up 6 3/4 cents, currently down 15 cents

Cash SRW Wheat  was $8.44 5/8 on Thursday, up 6 7/8 cents,

Dec 22 KCBT Wheat  closed at $9.79 1/2, up 12 1/2 cents, currently down 13 cents

Cash HRW Wheat  was $9.37 ¼ on Thursday, up 12 1/2 cents,

Dec 22 MGEX Wheat  closed at $9.77 3/4, up 13 1/2 cents, currently down 10 1/2 cents