Wheats Holding Overnight Strength

Current wheat prices are fractionally to 3 cents higher in all three classes. Front month wheat futures were lower to start the report day, and ultimately closed down by double digits. December SRW printed a 27 1/2 cent range and closed nearer to the lows on an 18 3/4 cent loss. The other front months were also lower by 10 to 18 cents. KC HRW futures went home on 10 to 20 cent losses. Spring wheat futures in Minneapolis went home on report day down by 12 3/4 to 18 1/2 cents. The USDA cash average wheat price was 20 cents higher to $9.20. 

Wheat’s updated balance sheet showed a 1 bpa lighter yield and a 2m acre lighter harvested area for a net 133 mbu lighter output of 1.650 bbu. On the demand side, USDA trimmed feed and residual by 30 mbu, and cut exports by 50 mbu. The net effect was a 34 mbu lighter carry-out of 576 mbu. The trade was looking for 562 mbu on average going in. 

Global wheat output was revised lower in the October report, seeing lower output in Brazil Argentina. The EU was lifted 2.65 MMT to 134.75. Global wheat stocks were 1 MMT tighter to 267.54 MMT, compared to the average pre report guess of 267.9 MMT. 

Algeria was said to have booked 480 – 510k MT of milling wheat – to be largely sourced from Russia. Japan is seeking 94k MT of wheat from the U.S., Canada, and Australia in a regular tender. 

Dec 22 CBOT Wheat  closed at $8.82 1/4, down 18 3/4 cents, currently up 1 3/4 cents

Mar 23 CBOT Wheat  closed at $8.99, down 18 cents, currently up 2 cents

Cash SRW Wheat  was $8.16 ½ on Wednesday, down 17 3/4 cents,

Dec 22 KCBT Wheat  closed at $9.70, down 20 3/4 cents, currently up 2 1/4 cents

Cash HRW Wheat  was $9.28 1/8 on Wednesday, down 20 3/8 cents,

Dec 22 MGEX Wheat  closed at $9.66 3/4, down 18 1/2 cents, currently up 3 1/4 cents